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Dr 30 August 2007 NELSON MANDELA BAY HUMAN RESOURCES DEVELOMENT STRATEGY (PHASE 2)
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Dr

30 August 2007

NELSON MANDELA BAY

HUMAN RESOURCES DEVELOMENT STRATEGY

(PHASE 2)

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DOCUMENT INFORMATION SHEET

Title of Report : Nelson Mandela Bay: Human Resource Development Strategy

Type of Report : Final Report

Prepared by : Nwabisa Vokwana & Duncan Grenfell

Organisation : Coega Development Corporation

Business Unit: Coega Human Capital Solutions

Date of Issue : 30 August 2007

PREPARED BY

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TABLE OF CONTENTS ACCRONYMS…………..……………………………………………………………………………7 SECTION OVERVIEW …………….………………………………………………………………..9

1 INTRODUCTION....................................................................................................................1-1

1.1 OBJECTIVES OF THE NELSON MANDELA BAY HRD STRATEGY ..................................... 1-1

1.2 WHAT INFORMS THE NMB HRD STRATEGY ...................................................................... 1-2

2 RESEARCH METHODOLOGY ................................................................................................. 4

2.1 GOALS OF THE RESEARCH PROCESS.............................................................................................. 4

2.2 RESEARCH APPROACH.................................................................................................................. 5

3 OVERVIEW: EASTERN CAPE & NMB CONTEXT................................................................. 10

3.1 THE DEMOGRAPHIC PROFILE.............................................................................................. 10

3.2 THE SOCIO-ECONOMIC STATUS OF THE EASTERN CAPE ............................................... 11

3.2.1 Overview of the Rural Economy: .......................................................................... 11

3.2.2 Poverty and Inequality ....................................................................................... 12

3.2.3 Structural Change and Sector Trends ............................................................... 13

3.2.4 Trade Performance............................................................................................ 15

3.2.5 The Spatial Distribution of Economic Activity in the Eastern Cape ................... 15

3.2.6 Nodal Developments ......................................................................................... 17

3.2.7 Overview of the Rural Economy: .............................................................……...18

3.2.8 The Nature, Size and Composition of the Labour Force in the Eastern Cape…………..21

3.2.9 Synthesis and Policy Implications .......................................................................... 24

3.3 THE IMPACT OF HIV/AIDS ON THE EASTERN CAPE’S ECONOMY AND LABOUR MARKET ................... 25

3.4 HRD PROFILE OF THE EASTERN CAPE ........................................................................................ 28

3.5 EDUCATION LANDSCAPE: OVERVIEW ........................................................................................... 31

3.5.1 Education Bands................................................................................................ 31

3.5.2 Further Education and Training (FET) (NQF Level 2-4): ................................... 32

3.5.3 DoE and Non-DoE Programmes in FETs:......................................................... 33

3.5.4 National Certificate Vocational (NCV):............................................................... 34

3.5.5 Nelson Mandela Metro FET Colleges:............................................................... 35

3.5.6 NMB Private Training Providers ........................................................................ 35

3.5.7 NMB DoE Technical Schools............................................................................. 36

3.5.8 Higher Education National Context:................................................................... 36

3.5.9 Nelson Mandela Metropolitan University: .......................................................... 38

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4 EDUCATION AND TRAINING CAPACITY: NMB ................................................................... 39

4.1 TECHNICAL SCHOOLS .......................................................................................................... 39

4.2 FURTHER EDUCATION AND TRAINING COLLEGES ........................................................... 40

4.2.1 FET Programmes............................................................................................... 40

4.2.2 . PUBLIC FET COLLEGES: NMB...................................................................... 41

4.3 PRIVATE TRAINING PROVIDERS: ACCREDITED..................................................................... 45

4.3.1 EASTCAPE TRAINING CENTRE (ETC)........................................................... 45

4.3.2 INDUSTRIES EDUCATION & TRAINING INSTITUTE (IETI) ........................... 46

4.4 OTHER PRIVATE TRAINING PROVIDERS: CETA ACCREDITED............................................. 48

4.5 SKILLS PROGRAMMES AND LEARNERSHIPS: ADDITIONAL................................................. 49

4.5.1 Construction Industry Training Providers: ................................. ……………….49

4.6 ENGINEERING INFRASTRUCTURE & FACILITIES: NMB REGION....................................................... 50

4.7 NELSON MANDELA METROPOLE UNIVERSITY (NMMU)................................................................. 50

5 OVERVIEW OF SKILLS ANALYSIS: Eastern Cape ............................................................... 54

5.1 NATIONAL OVERVIEW ........................................................................................................... 54

5.2 REGISTERED ENGINEERS IN SOUTH AFRICA................................................................................. 55

5.3. MERSETA SECTORS ................................................................................................................. 57

5.3 CONSTRUCTION SECTOR ............................................................................................................ 60

5.4 OVERVIEW: SKILLS SHORTAGES IN THE NMB................................................................... 62

5.4.1 Electrical / Mechanical Skills:............................................................................. 62

5.4.2 Manufacturing skills: .......................................................................................... 63

5.4.3 Building Skills :................................................................................................... 63

5.4.4 MBA: Skills in the Building Industry: Southern & Eastern Cape........................ 66

5.4.5 Projected Skills Shortages For Planned Mega Projects: ................................... 67

5.5 LEARNERSHIP TYPES AND SKILLS PROGRAMMES: NMB ................................................ 68

5.5.1 Construction Education and Training Authority (CETA): NMB .......................... 68

5.5.2 CETA Learnerships............................................................................................ 68

5.5.3 MERSERTA Apprenticeship and Learnerships: NMB....................................... 69

5.5.4 MERSETA In-house Skills Programmes ........................................................... 74

5.5.5 Possible skills challenges in the NMB ............................................................... 75

6 HUMAN CAPITAL DEVELOPMENT INITIATIVES: NMB ..................................................... 77

6.1 OVERALL CONTEXT ..................................................................................................................... 77

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6.2 ACCELERATED AND SHARED GROWTH INITIATIVE FOR SOUTH AFRICA (ASGISA) ........................... 77

6.3 INITIATIVE FOR PRIORITY SKILLS ACQUISITION (JIPSA): ............................................................... 83

6.4 NATIONAL SKILLS FUND: PROVINCIAL STRATEGIC PROJECTS........................................................ 84

6.5 SETA SKILLS DEVELOPMENT INITIATIVES .................................................................................... 86

6.6 CETA SKILLS DEVELOPMENT INITIATIVES: EC AND NMB .............................................................. 86

6.7 MERSETA SKILLS DEVELOPMENT INITIATIVE: EC AND NMB ....................................................... 87

Education and Training Quality Assurance (ETQA) :....................................................... 87

6.8 CHIETA: SKILLS DEVELOPMENT INITIATIVES: EC & NMB ............................................................ 94

6.9 ENGINEERING COUNCIL OF SOUTH AFRICA (ECSA) ........................................................ 95

6.10 ADDITIONAL REGIONAL INITIATIVES: NMB......................................................................... 98

6.10.1 MATHS & SCIENCE INITIATIVES IN THE EDUCATION SECTOR................. 98

6.10.2 . Automotive Industry Development Centre Initiatives (AIDC) initiatives......... 100

6.10.3 . Coega Development Corporation Initiatives ................................................. 103

6.11 SKILLS DEVELOPMENT FUNDING SOURCES ................................................................... 105

7 RECOMMENDATIONS ......................................................................................................... 107

7.1 THE HRD STRATEGIC LEVERS........................................................................................... 108

7.1.1 Human Capital Development Initiatives........................................................... 108

7.1.2 EDUCATION AND TRAINING INSTITUTIONS............................................... 111

7.1.3 SECTOR EDUCATION TRAINING AUTHORITIES ........................................ 113

7.1.4 BUSINESS....................................................................................................... 113

7.1.5 HRD ROLE PLAYER GROUP......................................................................... 114

7.2. RECOMMENDED IMPLEMENTATION PLAN: Urgent Areas .............................................. 115

8 CONCLUSION....................................................................................................................... 120

APPENDIX A-C

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ACCRONYMS

ABET Adult Basic Education and Training

AIDC Automobile Industry Development Centre

ASGISA Accelerated and Shared Growth Initiative for South Africa CDC Coega Development Corporation

CETA Construction SETA

CHIETA Chemical SETA

Coega HCS Coega HUMAN CAPITAL SOLUTIONS

DoL Department of Labour

DST Department of Science and Technology

ECP Eastern Cape Province

EDTA Economic Development Tourism & Agriculture

ELCONOP3 Electrical Construction Operations 3

EPWP Extended Public Works Programme

ESETA Energy SETA

ETC Eastcape Training Centre

FET College Further Education and Training College

FIFA Fédération Internationale de Football Association

FOODBEV Food and Beverage Sector Education and Training Authority

FTE Full Time Equivalent

GP Gauteng Province

HCFIS Human Capital Forecasting Information Management System

HE Higher Education

HEMIS Higher Education Management Information System

HRD Human Resource Development

HSRC Human Science Research Council

ICT Information and Communication Technology

JIPSA Joint Initiative on Priority Skills Acquisition

MBA Master Builders Association

MBDA Mandela Bay Development Agency

MEI&P Mechanical, electrical, instrumentation and piping

MERSETA Manufacturing, Engineering and Related Services SETA

MIG Municipal Infrastructure Grant

NBI National Business Initiative

NMB Nelson Mandela Bay

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NMBIC Nelson Mandela Bay Investment Council

NMBICC Nelson Mandela Bay International Convention Centre

NMMM Nelson Mandela Metropolitan Municipality

NMMU Nelson Mandela Metropolitan University

NQF National Qualifications Framework

NSA National Skills Authority

NSDS National Skills Development Strategy

OEMs Original Equipment Manufacturers

OFO Organising Framework for Occupations

PE College Port Elizabeth College (FET)

PIG Provincial Infrastructure Grant

RIDA Rapid Infrastructure Development Agency

RU Rhodes University

SAQA South African Qualification Authority

SDF Skills Development Facilitator

SETA Sector Education and Training Authority

SMME Small Medium and Micro Enterprise

SNF Shutdown Network Forum

SOE State Owned Enterprise

SSP Sector Skills Plan

TETA Transport Education and Training Authority

UCT University of Cape Town

UDDI Uitenhage Despatch Development Initiative

WSP Workplace Skills Plan

WSU Walter Sisulu University

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SECTION OVERVIEW

Section 1 is the introduction and discussion of the objectives of the human resource

development strategy.

Section 2 discusses the research methodology with a focus on research areas and research

constraints.

Section 3 gives a general socio-economic and education overview of the Eastern Cape

Province and the Nelson Mandela Bay.

Section 4 gives a brief overview of the education and training institutions and provides a

detailed account of the state of the education and training capacity in the Nelson

Mandela Metro. A detailed discussion of the capacity of FET colleges is provided.

Whilst the Port Elizabeth College is the biggest government funded FET College, the

report is silent on the capacity of the college. Numerous attempts, visits, emails,

telephone calls to obtain factual information about the college proved fruitless.

Section 5 is an overview of the skills situation in the Nelson Mandela Metro. The discussion

on the Metro is prefaced by a discussion on the skills situation at national level.

Section 6 provides a detailed discussion on the human capital initiatives underpinning

human capital development within the Metro. The section concludes with a discussion on

skills funding sources and funding constraints.

Section 7 outlines the recommendations that could form basis for implementing an HRD

strategy for the metro.

Section 8 is the conclusion.

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1 INTRODUCTION

The Nelson Mandela Metro Municipality, through its Trade & Investment Economic

Development, Tourism & Agriculture directorate commissioned the Coega

Development Corporation (CDC) to undertake a study that would result in the drafting

of the NMB’s human resource development strategy and plan. The objective of the

HR Development Strategy is to foster the process of building the region’s intellectual

capacity and understand the skills base of the region; influence and improve

international confidence and investor perceptions of the NMB economy; improve

productivity; reduce unemployment and increase the number of SMMEs.

The HRD strategy proposed has taken a holistic approach by analysing a range of

factors that impact on human resource development. In this regard the report details

the socio-economic situation of the Nelson Mandela Bay; provides information on some

of the key learnerships, apprenticeships and skills programme taking place in the

region; gives an informative view of the students enrolled and graduating from the NMB

based education and training institutions with the manufacturing, construction, chemical

and energy sectors; provides a brief over view on the private training provider capacity,

(that is) facilities and human resources, as well as a detailed matrix of the types of

skills, the trades and skill levels required for mega projects due to start in the NMB from

2007-2020. There is also a detailed analysis of the various skills development initiatives

and partnerships established by various stakeholders to address the human resource

shortages within the NMB.

1.1 OBJECTIVES OF THE NELSON MANDELA BAY HRD

STRATEGY

The Nelson Mandela Metropole (previously Port Elizabeth, Uitenhage and

Despatch municipalities) has a population of about 1.4-million people, 52% of

which are female. Port Elizabeth is also home to some of the largest automotive

and original equipment manufacturers (OEM’s) in the country. The Nelson

Mandela Metropolitan Municipality has experienced economic growth as well as

an increase in the number of people seeking employment.

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The HRD strategy will only focus on the manufacturing, construction, chemicals

and energy sectors. These sectors have been identified as the key strategic

economic sectors for the region.

The objectives of the HRD strategy will be:

• To make recommendations on the best approach and interventions that the

Municipality can undertake to create a pool of highly competent skills, at all

skill levels.

• To ensure the creation of sustainable and innovative partnerships, between

some of the key stakeholders.

• To ensure the support and funding of key human resource development

initiatives currently in existence in the NMB region.

• To ensure the integral participation of local business in the skills

development initiatives.

• To ensure the availability, accessibility, support and improvement to

engineering infrastructure and facilities.

• To ensure the nurturing of training provider capacity within these sectors.

• To consolidate and coordinate Grade 10-12 Maths and Science initiatives.

• To ensure the capacitation of Technical Schools and their support by

private business and local communities

• To establish an HRD Role player structure to ensure the implementation of

the future HRD Plan.

• To build Nelson Mandela Bay’s international image and reputation as a

leader in human resource development within the broad field of Science,

Engineering and Technology.

The objectives outlined above recognise that the municipality must play a

central and complementary role in providing incentives for pursuing human

resource development. The objectives also recognise the national and

provincial imperatives of utilising human capital as a competitive advantage in

attracting foreign direct investments.

1.2 WHAT INFORMS THE NMB HRD STRATEGY

� Interventions that will ensure the development of human resources across

the manufacturing, construction, energy and chemical sectors are able to

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respond to current and future mega projects and upcoming investments of

the Nelson Mandela Bay. � Human capital development initiatives that exist in the Nelson Mandela Bay

region � Education and Training Institutions able to respond to skills training as well

as development of a well equipped human resources. � Develop and manage a central database that will enable a HRD

Forecasting for the Nelson Mandela Bay � Information and marketing initiatives by the municipality and key role

players within these sectors for the promotion and attainment of a

consolidated and integrated HRD programme.

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2 RESEARCH METHODOLOGY

In compiling the document, desktop and field research was undertaken in order to

respond to key research items as outlined below. Emails, telephonic and face to face

interviews were also conducted with a range of stakeholders.

In addition to the interviews, the team carried out site visits to inspect the training

facilities used at the East Cape Midlands College, Eastcape Training Centre and Port

Elizabeth College (Russell Road) and Ilitsha Holdings (see appendix 1).

Other sources for information were sector Work Place Skills Plans; organisational

websites and documentation, relevant databases such as the Department of Labour

unemployed database, Nelson Mandela Metropolitan University databases, research

reports, etc. Where possible the research team has attempted to ensure that all

research data is relevant and up-to-date. Reference to sources shall be reflected in

footnotes.

2.1 Goals of the research process

The primary goal of the research is to draft the NMB HRD Strategy through

conducting analysis that will include:

1. Conducting a skills audit in the NMB to determine the availability of skills

as identified in the short term skills matrix developed under Phase 1 of

the NMB HR Development Plan.

2. Conducting a gap analysis between the demand for skills and skills

availability in the region.

3. Analysing of the education and training institutional capacity in the NMB

to meet training demands.

4. Reporting on the state of facilities in education and training institutions,

used to meet skills development requirements.

5. Outlining current NMB initiatives being undertaken in the region aimed at

addressing the skills shortages.

6. Identifying funding opportunities to address skills development initiatives

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2.2 Research approach

The approach adopted is outlined for each item as follows:

Research Item (1 & 2):

Conduct a skills audit and a skills gap analysis in the NMB to determine the

availability or non-availability of skills as identified in the short term skills matrix

developed under Phase 1 of the NMB HR Development Plan.

In undertaking the skills audit and skills gap analysis the research team looked

at the NMB projects planned for the next five years, inclusive of the Vision 2020

projects of the NMBM (reference given to the report conducted for the NMB by

the LBMS1); projected investment pipeline of projects for Coega IDZ and the

2004 Motherwell Skills Audit undertaken by the former University of Port

Elizabeth. Where data is available the team looked at the local private sector

future investments. However the latter has proved to be particularly difficult as

private companies consider such information as confidential in nature.

To enable a full understanding of the skills available in the NMB region the team

interrogated information from the local bargaining councils of the different sectors

(construction, manufacturing, chemical, metals and related); the Department of

Labour’s unemployment database, CDC HCS database and research conducted

by NMMU.

The skills development legislation requires all companies to provide information

on their human resource development plans on an annual basis. One of the

objectives of such an excise is for the companies to report to their relevant SETA

on the current status of their workforce. The relevant SETAs for this project are

MERSETA, CETA and CHIETA.

Detail will be reported as national, regional (Eastern Cape) and local (bargaining

councils) information. In addition, the report will include information from

professional councils, whose key functions is the registration of personnel

against particular unit standards. The registers provide an indication of 1 Dated June 2006

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individuals entering the professions each year. The most relevant profession for

this study is the Engineering Council of South Africa (ECSA). The report outlines

all the personnel registered with the council.

The discussion of this item is contextualised in a discussion of the demographic

profile of the population residing in the NMB. The research team also consulted

HSRC research conducted in the Eastern Cape Province, 2005 Household

Survey, 2006 Labour Force Survey and Census statistics of persons residing in

the NMB.

Research Item (3 & 4):-

Conduct an analysis of the education and training institutional capacity that exists

in the NMB to meet the demands identified in Phase 1 of the NMB HR

Development Plan as well as report on the state of facilities used to meet skills

development requirements and training.

Higher Education and Further Education and Training institutions play a critical

role in ensuring that training and development appropriate and required human

resource capacity in any context. The recent restructuring in both the further

education and training and higher education sector has presented institution with

both opportunities and challenges. For instance, all newly merged or

incorporated education institutions are required to provide the national

Department of Education institutional operating plans (IOP’s). An IOP must

stipulate an institution’s change scenarios that will enable an institution to plot out

the anticipated financial outcomes of pursuing particular strategies or options and

thereby assist them in making a “best case” choice. Each change scenario must

reflect operating income and expenditure estimates and include: implications for

teaching, learning and research activities, as well as support services; proposed

changes to institutional infrastructure, property, plant and equipment and the

means for financing each project.

The NMB has also been affected by the recent changes in the education

landscape. The FET sector saw the creation of two mega public colleges, the

Port Elizabeth Public College and the Eastcape Midlands Public College.

Relevant information was requested from them. The Nelson Mandela Metropole

University is a new university made up of the former Port Elizabeth Technikon

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and Universities of Port Elizabeth and Vista (PE Campus). The research team

has been given access to the NMMU’s IOP document and this will assist in

understanding the intended strategic direction of the university and how as such

it such relates to the human resource development needs of the NMB region.

The NMMU has also given us access to their current figures in different areas of

specialisation within which students are enrolled and graduate. This information

will be complemented by information received the national Department of

Education.

A spreadsheet on evaluating the training facilities was compiled as a basis for the

site visits and collection of data on the status of engineering facilities. The

continuous upgrading and maintenance of facilities in education and training

institutions is critical in meeting the skills development requirements of the

region. Thus information on the current structural resources used for the

implementation of human resource training in the NMB will be outlined.

Education institutions play a pivotal role in providing local business and foreign

investors with the requisite skills. The academic and research capacity of higher

education institutions in South Africa are playing a key role in ensuring the

resources are in place. Research and development capacity and specialists’

skills are located within higher education institutions. This report shall outline the

capacity of the NMB based education institutions, in particular the NMMU, PE

Public College, Eastcape Midlands Public College as well as the capacity of

private education providers located in the NMB. Thus the team developed a

portfolio of current and planned specialist academic and research programmes

that are offered by education institutions in the region.

Research Item (5 & 6):-

Outline current initiatives aimed at addressing the skills shortages identified in

the HR Development Strategy and Plan and identify funding opportunities to

address skills development initiatives.

A number of initiatives have been undertaken by government and quasi-

government organisations to address the shortages of skills in the South African

economy. These initiatives have recently been taken to a higher level through the

introduction of the of the ASGISA and JIPSA government initiatives. Professional

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bodies also play a key role in addressing skills shortages. For the purposes of

this research our focus is on the ECSA initiatives. The Sector Education Training

Authorities have continued to play a crucial role in ensuring skills development.

For this report the research team has only outlined initiatives by MERSETA,

CHIETA, ESETA and CETA.

Within the NBM area, there are several initiatives aimed at ensuring the

development of human resource capacity in the region. These are outlined in

detail.

Research item 7:-

Make recommendations on the key strategic interventions needed for to ensue a

functional regional co-ordinating structure for human capital development .

The NMB has in place an Economic Development Tourism and Agriculture Unit,

which amongst other things is tasked with ensuring the development and

implementation of a viable human resource development strategy for the metro.

As part of this mandate the EDTA unit has a human resource reference group.

The composition as well as the terms of reference of the HRD Reference Group

needs to be revised so that they effectively articulate as well as align to the

provincial and national HRD strategies. The research team interacted with key

stakeholders on how the composition of a revised HRD structure. The report

makes suggestion on the need to create sector specific sub-structure.

Research Constraints

A major challenge has been time constraints. Obtaining NMB specific information

on a range of issues has proved most difficult. This difficulty is influenced by the

lack of survey data conducted for the NMB. The research has also been

hampered by the development of Sector Skills Plans (SSP) by the various

SETAs. Most SSP will be available in public domain from late April and the first

week of May.

After numerous attempts the research team was not able to obtain information

from the Port Elizabeth Public College. Various attempts were made to obtain

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basic information about course offerings, numbers of students and quality of

facilities for the engineering department, yet these attempts were fruitless. This

has compromised this report as it does not give the full picture of the FET Sector

in the NMB region.

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3 OVERVIEW: EASTERN CAPE & NMB CONTEXT

3.1 THE DEMOGRAPHIC PROFILE

The Eastern Cape lies on the south-eastern seaboard of South Africa and is the

country's second largest province. Its population is just over 6, 9 million, about

15% share of the South African population. The geographical spread of the

region is close to 168 966 square kilometres, which is about 41 people per

square kilometres. Whilst one can safely say that all people with basic education

have some command of the English language, isiXhosa is the first language

spoken by approximately 83.4% of the EC population, Afrikaans is a first

language to about 9.3% and English is a first language to about 3.6% of the

population. The capital town of the province is Bhisho, located about 300

kilometres South East of Port Elizabeth with Port Elizabeth being the major city.

The Nelson Mandela Metropole (previously Port Elizabeth, Despatch and

Uitenhage municipalities) has a population of about 1.4-million people, 52% of

which are female. Port Elizabeth is also home to some of the largest automotive

and original equipment manufacturers (OEM) in the country.

Gender and Race Population breakdown2

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3Population spread in the Nelson Mandela Bay4

� � � � � � �� � � � � �� � �� � � � ! " # $ � �� " ! � � �

" % & ' � � � % ( �� � � & % ) � � ( � �� � � � ' * �+ � � , � � �) � � - * . �

� / - � 0 � ( � � � � � � � � � � � & % ) � 1 � � � � � � � �

� � % % ' - � 1 � � � � � � � � � 2 ( � � & % ) � 1 � � � � � � � �

� � * � � ( � � � � � � � � � � � � � � � � � �

2 Data source: Household Survey 2005 3 Data source: Census 2001. However current population estimates stand at 1.4 million

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� � � � � � � � � � � � � � � 3 � 3 � � � � � � � � �

� 3 � 3 � � � � � � � � � �

� � � � � � � � � � � � ( 1 � - �

� � � � � � � � � � � �

Gender: Population of working age (15-65 years)5

�� � � � �� � �

� � �� � � � � � � � ���� � � � � ��� �� � � � � � ���� � � � ��� �� �

���

3 � 3 � � � 3 % � � � � % - 4 � - * � 2 ( � � & % ) � � ( � �- � � � �

�� �� � + � � � � . � � �+ � �� � � . � �� ��

� � � � �� � � � � �� � � � � �� � � � � �� � � � � � 5 � �

� � � � �� � � � � �� � � � � � � � � � � � � � 5 � �

�� � �� � �

�� �� �� � � � � � ���� � � � ��� �� � � � � � ���� � � � ��� �� �

�� 3 � 3 � � � 3 % � � � � % - 4 � - * � 2 ( � � & % ) � � ( � �- � � � �

�� �� � �+ � � � � . � � �+ � �� � � . � �� ��

� � � � �� � � � � �� � � � � �� � � � � �� � � � � � 5 � �

� � � � �� � � � � � � � � � � � � � � � � � 5 � �

3.2 THE SOCIO-ECONOMIC STATUS OF THE EASTERN CAPE

In order to set the context for the analysis of labour market trends in the Eastern

Cape, below is an analysis of trends in the provincial economy in the 1996 –

2002 periods. Given that economic growth and its character determine the

demand for labour, this is an essential causal factor that explains trends in

employment and unemployment.

3.2.1 Overview of the Rural Economy: Agricultural Production, Livelihoods and Employment:

In terms of its relative position within the national economy, the Eastern

Cape is home to 15% of South Africa’s population, but accounts for only

7% of its GDP. Consequently, in terms of output per capita, it is South

Africa’s second poorest province after Limpopo, with per capita income

well below the national average and less than a quarter of that of

Gauteng and the Western Cape.

5 Source: SA General Household Survey 2005

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During the 1996 – 2002 periods, the Eastern Cape’s annual average

growth rate of 1.9% was well below the national average of 2.5%, and

the second lowest of South Africa’s nine provinces. This is an indication

that the province has been falling behind the more prosperous provinces

in the post-apartheid period. Per capita output has, however, grown over

the 1996 – 2002 period, due to economic growth outstripping population

growth.

The structure of the Eastern Cape economy differs markedly from the

national economy in two respects: the mining sector is much smaller and

the tertiary sector considerably larger compared to other rural provinces

such as Mpumalanga, Limpopo and Kwa-Zulu Natal. In addition, in the

primary sector, agriculture is a larger contributor to output in the Eastern

Cape than is the case for the national economy. As a result the tertiary

sector, the financial and trade sub-sectors account for a relatively higher

proportion of output than is the case for the national economy.

In terms of human development, the province has made progress during

the 1996 – 2002 periods, as evidenced by an improvement in its human

development index (a composite index of life expectancy, literacy and

income) from 0.49 to 0.53. However, it remains the second lowest of

South Africa’s 9 provinces, after Limpopo.

3.2.2 Poverty and Inequality

The legacy of apartheid weighs heavily on the Eastern Cape, particularly

because it incorporated two former homelands, Transkei and Ciskei. In

2002, the Eastern Cape had the highest level of poverty and inequality of

South Africa’s 9 provinces. Critically, between 1996 and 2002, the

percentage of people in poverty in the Eastern Cape increased by a

massive 14 percentage points, from 54% to 68%, far exceeding the

growth in poverty at a national level.

Given that economic growth exceeded population growth in the 1996 –

2002 periods, it would be reasonable to expect some eradication of

poverty. However, growing inequality has meant that the benefits of

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economic growth have been unequally distributed, thereby contributing

to a growing poverty rate. Indeed, with a Gini Coefficient (the most widely

used summary statistic of income inequality) of 0.64 in 2002, the Eastern

Cape had the highest level of inequality of South Africa’s 9 provinces.

While growing inequality has been a national trend in the post-apartheid

era, it has grown faster in the Eastern Cape than nationally.

3.2.3 Structural Change and Sector Trends

The structure of the Eastern Cape economy differs from the national

economy in two respects: the tertiary sector accounts for a higher

proportion of output and the primary sector for a smaller proportion. This

is primarily because there is almost no mining activity in the province.

The tertiary sector has been growing the fastest over the 1996 – 2002

periods, followed by the secondary and primary sectors. In all cases

growth has been significantly below that of the national economy.

Agriculture is the most important source of output in the primary sector,

accounting for over two-thirds in 2002. Forestry accounts for just under

one-third of primary output. In the secondary sector, manufacturing is

dominant, accounting for 82.6% in 2002 and growing at an annual

average rate of 1.6% in the 1996-2002 periods.

The transport equipment (i.e. automotives) sub-sector is both the largest

contributor to the secondary sector, accounting for 26% of its output in

2002, and the fastest growing. Another sub-sector that plays an

important role in the provincial economy is fuel, petroleum, chemical and

rubber products, accounting for 14.6% of secondary output in 2002. The

food, beverages and tobacco products industry accounts for 10.4% of

the output of the secondary sector, but has been contracting at an

average rate of –1.7% over the 1996-2002 period. Other important

industries in the manufacturing sector are furniture, metal products,

textiles, clothing and leather, wood and wood products and electrical

machinery and apparatus. With the exception of clothing and textiles,

these industries have all been growing during the 1996 – 2002 period.

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The expansion of the tertiary sector in the Eastern Cape has been the

most significant structural change in the provincial economy in the post-

apartheid period. The community services sub-sector is dominant,

accounting for 45.4% of output in 2002. This sector is dominated by

services provided by government such as health and education and has

been growing at a slow annual average rate of 0.4% during the 1996 –

2002 period. In the analysis of the Eastern Cape’s 7 sub-regional

economy’s it is striking that in the district councils that were formerly

homelands, community services account for as much as 50% of

economic output.

The fastest growing sectors (by annual average growth rate in the 1996

– 2002 periods) are post and telecommunication (13.4%), activities

auxiliary to financial intermediation (11.5%) and financial intermediation

(7.8%). The fourth largest sector, retail trade and repairs of goods have

been growing at an annual average rate of 3.1%, above the national

average of 2.7%. Four sub-sectors have been declining, as measured by

annual average growth rates in the 1996 – 2002 periods: water transport

(-26.6%), hotels and restaurants (-1.6%), wholesale and commission

trade (-0.9%) and sale and repair of motor vehicles (-0.4%). Apart from

water transport, none of these sectors have contracted at the national

level.

Broad structural change between 1990 and 2002 is such that all the sub-

sectors within the primary and secondary sector have declined in terms

of their contribution to the province’s gross value added. In contrast, with

the exception of trade, all the sub-sectors in the tertiary (or services)

sector have expanded during this period. In relation to South Africa’s

other provinces, the Eastern Cape has a marked comparative advantage

in the agriculture and community services sectors and a marginal

advantage in manufacturing and trade, as measured by the location

quotient.

From the perspective of sub-sectors the top performers have been

agriculture and hunting in the primary sector, transport equipment,

chemical and rubber products, metal products, machinery and household

products and electrical machinery in the manufacturing sector and retail

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trade, financial intermediation, services auxiliary to financial services,

and post and telecommunication in the tertiary sector. Notably, with the

exception of agriculture none of these sectors have been generating

employment at any significant scale.

3.2.4 Trade Performance

The most dramatic structural change that the Eastern Cape economy

has undergone in the post-1994 period is the shift from an inwardly

focused autarkic economy to an open, export oriented economy. This

shift is evidenced by booming exports. The growth in exports has been

dramatic, peaking at 250% of their 1996 levels in 2001. Indeed, despite

buoyant export growth in the national economy, the growth of exports in

the Eastern Cape has by far outstripped national aggregates, making it

the province with the fastest growing exports. In aggregate, imports grew

by 20% between 1996 and 2002, and accounted for 8% of South Africa’s

imports.

In 2002, 96% of exports and 98% of imports were of manufactured

goods. Agriculture accounted for 4% of exports and 2% of imports. The

transport equipment sub-sector accounts for more than two-thirds of

exports and imports and is the fastest growing export sector. Other

significant and fast-growing sub-sectors are metal products, machinery

and household appliances, furniture and textiles, clothing and leather

goods.

3.2.5 The Spatial Distribution of Economic Activity in the Eastern Cape

The cause of high and growing rates of poverty and inequality in the

Eastern Cape become evident when the population of its 7 sub-regions

is compared to their contribution to provincial gross value added. While

the Nelson Mandela metro is home to only 16% of the Eastern Cape’s

population, it accounts for 44% of its gross value added. In contrast, the

Oliver Tambo DM, home to 26% of the province’s population, accounted

for a mere 10% of GVA in 2002. Per capita GVA is vastly unequal across

the 7 sub-regions. The per capita income of Alfred Nzo, the poorest sub-

region, is 12% of the richest sub-region, the Nelson Mandela Metro. As is

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the case with economic activity, poverty is inequitably distributed across

the province, with 82.4% of the poorest sub-region’s population, the

Alfred Nzo district council, living below the poverty line, while in the

Nelson Mandela metro only 38.6% of the population are below the

poverty line.

Growth has been vastly uneven among the 7 sub-regions. The Port

Elizabeth Metro has grown spectacularly, with its annual average growth

rate far exceeding the national average. The Western District Council

has grown at a rate of 2.4% per annum, close to the national growth rate

for the 1996 – 2002 periods. For the remaining DCs, growth has been

well below the national average. In the case of the Ukhahlamba and

Alfred Nzo DCs, average annual growth has been negative. Hence these

economies have been contracting, partly as a consequence of

deindustrialisation, as evidenced by a decline in the output of the

secondary sector. This has contributed to the deepening poverty and

inequality in the Eastern Cape. Critically, these sub-regions have fallen

behind in terms of national and provincial growth in the post-apartheid

period.

With regards economic structure, in the Nelson Mandela Metro and

Amathole DC, the secondary and tertiary sectors are dominant and have

underpinned the high growth rate of the former. In the four poorest sub-

regions, the primary sector is an important contributor to GVA because of

the role of agriculture. The services sector is the largest contributor to

GVA largely because it is dominated by government services. The

secondary sector is relatively small in these sub-regions and has been

contracting in the 1996 – 2002 period, suggesting that the poorer sub-

regions are undergoing a process of deindustrialisation.

The spectacular growth in exports emanating from the Eastern Cape is

concentrated exclusively in the Nelson Mandela Metro and the Amathole

DC, where the manufacturing sector is concentrated. Indeed, the Nelson

Mandela Metro accounts for almost two-thirds of the Eastern Cape’s

imports and exports. With the exception of the 2% of exports accounted

for by the Western DC, the remaining sub-regions are completely

excluded from export-oriented growth trajectory of the province.

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3.2.6 Nodal Developments

The following nodal developments are currently at various stages of

implementation in the Eastern Cape:

� Fish River SDI � Wild Coast SDI � Coega IDZ � East London IDZ

Given the vastly unequal distribution of economic activity and poverty

across the Eastern Cape’s 7 sub-regions, it is worth noting that only the

Wild Coast SDI is located in the poorer sub-regions. The Fish River SDI,

of which the Coega and East London IDZs comprise an integral part, is

focused on the Nelson Mandela Metro and East London (as opposed to

the Amathole DC). These nodal developments will be an important

means of attracting investment, both foreign and domestic to the Eastern

Cape. They also have the potential to set in motion a virtuous circle of

growth and development if agglomerations develop around anchor

investments.

The key to maximising the economic impact of nodal developments is to

strengthen linkages between anchor projects and the provincial

economy, in order to enhance employment multipliers and spread the

benefits of economic growth. The development of such linkages requires

policy interventions as it is naïve to assume at the outset that linkages

will automatically develop between large new Greenfield investment

projects and the local economy, particularly if the projects are located in

an IDZ environment. At the same time, such linkages are critical if

projects are to generate multipliers in the regional economy, thereby

setting in motion a virtuous circle of economic development.

From the perspective of labour markets and employment, the impact of

these nodal developments on unemployment will be marginal. In the

context of a broad unemployment rate of 47.6% and 1.1 million

unemployed people in 2002, the creation of an estimated 46,000

permanent jobs over the next 10 years is a proverbial drop in the ocean.

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The employment opportunities associated with these nodal

developments can, however, is vastly expanded if linkages with the

provincial economy are forged and deepened over time.

3.2.7 Overview of the Rural Economy:

The analysis of the rural economy is essential to the strategic review of

the Eastern Cape labour market as the majority of the Eastern Cape’s

population (63.5% in 2002, compared to a national average of 44.6%)

reside in rural areas, where the unemployment rate, in terms of the broad

definition, is highest and where the majority of the unemployed are

located. While the broad agricultural sector accounted for a mere 6.8% of

the provinces output in 2002, just over one-fifth of employment is in this

sector.

A large number of rural households in the Eastern Cape still depend on

the rural agricultural economy for various livelihood strategies, in a

context where the agricultural sector makes a smaller contribution to total

household income relative to other sectors. Indeed, the contribution of

the rural agricultural sector to total household income has undergone a

secular decline and there are no indications that this trend is set to

change.

The Eastern Cape’s rural economy comprises two major parts: a highly

developed technology-intensive commercial agricultural sub sector and a

small-scale underdeveloped subsistence agriculture sub sector. These

two agricultural sub-sectors exist almost as two separate economies.

The scale of farming in the two economies is highly unequal. There are

approximately 10 million hectares in the hands of 6,500 white

commercial farmers. This land is mainly under sheep, cattle, mixed, dairy

and vegetable production. The land area of what was Ciskei is a mere

800, 000 hectares, while that of the former Transkei is approximately 4,

280 000 hectares.

Detailed studies of livelihoods in the Eastern Cape show that most

households depend on multiple sources of income. Subsistence

agriculture generally contributes a relatively small proportion compared

to wages from both migrants and non-migrants. The latter accounts for

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between 60% and 80% of the income of rural households in the Eastern

Cape, with between a third and half coming from migrant remittances.

Pensions are the second most important sources of cash income

contributing between 10% and 20% to average household income.

Estimates of agricultural income in terms of both cash sales and produce

consumed within household show great variability, but most studies

estimate it to be between 10% and 25% of average household income,

of which the greater part is accounted for by direct consumption. This

may be an underestimation as longitudinal studies have revealed that

difficulties in measuring maize yields has led to a consistent

underestimation of the productivity of farming households.

Access to land, even relatively small plots, forests or communal grazing,

allows households to maintain a diversified livelihood strategy that

includes wage employment, pensions, agricultural production and

keeping livestock as a form of investment. Collectively, these strategies

enhance their ability to obtain a livelihood in adverse conditions. The

primary reason for cultivation is for household consumption and most of

the produce is consumed before harvesting time.

Broadly speaking, rural communities practice arable farming in two ways:

the cultivation of food gardens and arable farming. The former involves

households engaging in cultivation in the immediate vicinity of the house.

The contribution of food gardens to rural livelihoods should not be

underestimated. While yields are small, they represent an important

contribution to household food security.

In the second area of food production, where rural communities practice

arable farming on arable land, access to such land poses a major

challenge for most rural households. In general terms there has been a

decline in the quantity of arable land available to each household from an

average of 1.72 hectares in 1950 to 0.43 hectares in 1990, largely as a

result of `betterment planning’ and overcrowding. At the same time, the

proportion of households without land has increased from 10% to 40%.

As a consequence of the seasonality of agricultural production, there is a

scarcity of staple foods, including maize, in the majority of households

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during the August to February period. This coincides with the observation

that 95% of households rely on maize that is bought and not self-

produced during this period and that less than 5% of households are

self-sufficient for more than 6 months of the year.

Expenditure on food increases to more than 60% of total household

expenditure during this period. Although there is a general perception

that livestock in rural areas have little economic value in terms of sales

through formal markets, livestock ownership and production serves a

greater variety of functions than is the case in the commercial agriculture

system.

Livestock are used as draught animals (sometimes this is hired out) milk,

manure, dung as a sealant, dung for heating, bride-wealth, hides,

slaughtering, and for cash sales. While agriculture is an important

component of household food security and rural livelihoods, especially

for the poor, other sources of food and income have come to play an

equally important role. It is clear that poor rural households have

diversified their livelihood strategies by constructing a diverse portfolio of

activities and social support systems in their struggle for survival and to

improve their standard of living.

However, such diversification could be perceived as an indication of

increased household vulnerability, due to the failure of previous

livelihood strategies. The evidence suggests that there has been an

erosion of a fundamentally agrarian existence for the poor and an

increased reliance on non-farm and even non-rural incomes.

Employment trends are such that 21% of those employed in the Eastern

Cape are in the agriculture, hunting and fishing sector. In the commercial

agricultural sector there is a much higher proportion of permanent farm

labour than is the case nationally.

This suggests that employment in the commercial agricultural sector is

much more important as a source of sustainable employment and wage

income in the Eastern Cape than is the case in the rest of the country. In

contrast employment on farms in the former homelands is neither

sustainable nor a significant source of wage income. In a context where

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other sectors of the economy within the Eastern Cape have not been

expanding enough to provide a viable alternative to the poor performing

agricultural sector, access to land, and ownership of livestock remain

important for household livelihood strategies.

Policy interventions within the framework of Provincial Growth and

Development Strategy will be very important if the trend is to change.

The implementation and monitoring of sustainable land based

development programmes will remain critically important for a large

majority of the population in this province.

Ultimately, the dynamics of poverty and livelihoods within the communal

areas are integrally tied to the progress of the development agenda

within urban areas, the former ‘white’ commercial agricultural areas and

the future of small towns.

3.2.8 The Nature, Size and Composition of the Labour Force in the Eastern Cape

The data used to analyse the Eastern Cape’s labour market comes from

the September 2002 Labour Force Survey (LFS6). The Eastern Cape

sub-sample of LFS6 consists of approximately 10 000 people of working

age residing in 4 000 households.

Based on data from LFS6, it is estimated that the Eastern Cape has 3.87

million people of working age (15-64). Of these only 46.6% (±1.8%) are

estimated to be economically active (using the official or “strict”

definition). This is low when compared with the national labour force

participation rate of 56.7%. Of the economically active population in the

Eastern Cape, 590 000 or 32.5% (± 2.3%) are unemployed. This

unemployment rate is not statistically different from the national

unemployment rate of 30.5%.

Using the broad definition of economically activity and hence

unemployment the percentage of the population that is economically

active (using the broad definition) is estimated to be 60.0 % (± 1.4%) and

the number of unemployed to be 1.110 million or 47.6 (± 2.4%). This

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compares with a national broad labour force participation rate of 67.7%

and unemployment rate of 41.8%.

Thus, the broad definitions of participation and unemployment indicate

that in the Eastern Cape participation is significantly lower and

unemployment is significantly higher than in the country as a whole.

There is a great deal of variation in labour force participation and

unemployment rates across the province. In terms of the official definition

labour force participation varies from 26% in Alfred Nzo to 62% in

Cacadu and the Nelson Mandela Metropole, while the unemployment

rate varies from 19% in Ukhahlamba to 43% in Chris Hani. It is, however,

more pertinent to consider the proportion of the working age population

that are actually employed: Only one in three (31%) of adults of working

age is employed and this figure varies from 18% in Alfred Nzo to 49% in

Cacadu.

Labour force participation increases with higher levels of educational

attainment. While only 37% of those with no schooling are economically

active (using the official definition), 71% of individuals with matric and

86% of those with tertiary education are economically active.

Unemployment amongst those with tertiary education is considerably

lower than for other groups.

Unemployment declines sharply with age. Almost three-fifths (59%) of

the working age population in the Eastern Cape is under the age of 35

while the broad unemployment rate for this group stands at an alarming

60.7%. The informal sector is a major source of employment, with this

sector employing almost as many people as the private formal sector. In

the Eastern Cape it is estimated that approximately 432 000 people work

in the private formal sector, 218 000 in the public sector, 412 000 in the

informal sector and 136 000 as domestic workers.

In terms of broad economic sector, the composition of employment in the

Eastern Cape differs markedly from national trends. In particular,

agriculture accounts for a significantly higher proportion of employment,

as do private households (i.e. domestic work), construction and social

and personal services. In contrast, employment in manufacturing and the

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tertiary sector (i.e. wholesale & retail trade, transport and communication

and financial services) accounts for a lower proportion of employment

than is the case nationally. This starkly illustrates the fact that the sectors

that have driven the provincial economy’s growth have not been

absorbing labour.

More than two-thirds (69%) of the employed have less than a grade 12

education, while 18% have completed matric and 13% have

postsecondary qualifications. More than three-fifths of those with tertiary

qualifications work in the public sector. There are large returns to

education. Whereas the average salary for someone with less than

matric is R666 per month, this rises to R2831 p.m. for someone with

matric and R5677 p.m. for a worker with a diploma or degree.

Wages among those in the informal and domestic services sectors are

extremely low, with mean wages in these sectors in September 2002

standing at R365 and R285 per month respectively. Wages in the public

sector are higher than in the private formal sector for all workers other

than those with tertiary education.

In sum, the majority of the Eastern Cape’s labour force is African, rural

and unskilled. The spatial distribution of unemployment is such that it is

concentrated in the former homeland areas. Moreover, a high proportion

of jobs are in the low-wage, low-productivity informal sector indicating

that jobs are of a poor quality.

EC Employment and absorption rates and unemployment levels6

0

10

20

30

40

50

2001 2002 2003 2004 2005 2006

Eas tern Cape Province

AbsorptionRates

Unemployment

6 Source: Data obtained from Labour Force Survey: 2006

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NMB Employment Sectors7

N M B Em plo ym ent Sec t o rs

2%

23%

5%

16%

5%10%

21%

8%

10%

Agriculture; hunting; forestry andfishing

M ining and quarrying

M anufacturing

Electricity; gas and water supply

Construction

Wholesale and retail trade

Transport; storage andcommunication

Financial; insurance; real estateand business services

The above graph is based on the Census 2001 statistical information and

we expect that the picture would have changed given the presence of the

IDZ as well as development within the automotive industry around the

Nelson Mandela Bay.

3.2.9 Synthesis and Policy Implications

Policy-makers should also be cognisance of the fact that high and

growing rates of unemployment are a consequence of dynamics on both

the demand and supply sides of the labour market. On the supply-side,

increasing rates of labour force participation has significantly expanded

the number of job seekers, while the demand for labour has been

sluggish, particularly in the formal sector.

Consequently, a large stock of unemployed people has built up over

many years, and each year the economy is unable to absorb not only

this stock but also new entrants. Indeed, in terms of the ‘strict’ definition

at the national level the unemployment rate has grown by 10.5

percentage points between 1994 and 2002 (from 20% to 30.5%), and by

13.4 percentage points if the expanded definition is used. The causes of

unemployment in South Africa are manifold and complex.

7 Census 2001

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There is, however, substantial agreement that three factors are: trade

liberalisation, the skill composition of the labour force and the capital-

intensive nature of the South African economy. The experience of

unemployment in the Eastern Cape and its underlying causes is

consistent with the national experience. The dramatic increase in

manufactured output and exports that has supported the growth of the

tertiary sector has not given rise to the scale and nature of labour

demand required to redress growing unemployment.

What makes the unemployment situation in the Eastern Cape dire is the

large proportion of the population residing in rural areas. Hence, when

the broad definition of unemployment – which has a rural bias because it

includes discouraged workers – is used, the Eastern Cape’s

unemployment rate of 47.6% is significantly higher than the national

average of 41.8%.

3.3 The Impact of HIV/Aids on the Eastern Cape’s Economy and

Labour Market

While HIV prevalence among adults in the Eastern Cape is among the lowest of

the 9 provinces, the impact is likely to be severe, as it is concentrated in the 15-

49 age groups, which constitutes the bulk of the economically active population

and the core of Eastern Cape economy. This has negative implications for the

composition, size and growth of the labour force, as well as the province’s

capacity for effective human resource development.

Projected HIV infections, Aids deaths and Aids morbidity is estimated to grow at

a much higher rate than the provincial population. By 2010, the number of HIV

infections will peak at 1.2 million. The projections suggest that the Eastern Cape

is now in the middle of an extremely vulnerable period, as the sharpest increases

in infections are being experienced.

In terms of projected AIDS mortality, by 2010, 600 000 people in the Eastern

Cape will have died of Aids and approximately 200 000 will have contracted Aids-

related illnesses. On average, this will result in a steady population growth rate of

approximately 1% per annum. Given that rural populations generally have lower

HIV prevalence rates, the predominance of tribal areas (with the incorporation of

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the former Transkei and the Ciskei), farming villages and agricultural areas in the

Eastern Cape, may contain the spread of HIV infection.

This must, however, be balanced against the influx of migrant labourers, who due

to retrenchments may now be returning to these rural areas, thus leading to the

in-migration of HIV infections in rural areas. While this influence on HIV infection

rates is not well explored in the literature, it is likely to have a considerable

impact in the Eastern Cape. There are a range of demographic, socio-economic

and cultural factors that underpin the particular patterns of HIV/Aids in the

province.

There are some initial indications that male circumcision may have a protective

effect against the transmission of HIV. Given its widespread practice in the

Eastern Cape among the African Xhosa population, it may play a significant role

in reducing the overall HIV prevalence rate, compared to other provinces.

However, unhygienic circumcision practices, may in fact contribute to the spread

of the disease.

The following socio-economic characteristics of the Eastern Cape may play a

role in ensuring that the HIV/Aids burden falls disproportionately on those that

are the most marginalised, vulnerable and at a general socio-economic

disadvantage:

� High levels of poverty (particularly in former homeland areas); � High levels of unemployment; � Migrant labour and returning retrenched migrants; � High levels of male absenteeism from families and communities; and

Restrictive cultural traditions in terms of the social and economic status of

girls and women.

HIV/Aids impacts negatively on the national and provincial economy because

mortality rates are higher than they would otherwise be and this causes a

reduction in the labour force. Within the South African context, the costs of HIV

can be high for companies. Such costs could be in relation to the need for

companies to invest massively in HIV/Aids prevention programmes; putting in

place a vigorous EAP benefit; medical aid/insurance as well as costs towards

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sick leave, compassionate leave and providing contingency budgets for the

increased levels of absenteeism due to Aids-related deaths and illnesses.

As the cost-burden to companies, individuals, households and the state

increases, so does their vulnerability. The implications for the Eastern Cape’s

labour market are dire: in a context where the national labour force is projected to

decline by between 18 to 21 per cent by 2015, the costs related to HIV/Aids

morbidity and mortality (including increased labour turnover, losses in skills,

experience and productivity) will be onerous.

The epidemic is also likely to exacerbate unemployment among the unskilled.

This is because its disproportionate impact on the economically active population

will result in changes in the size and nature of the labour force. At a national

level, it is projected that the demand for labour, particularly for unskilled labour,

will decline due to the decline in economic growth. Hence the growth in

employment will be lower than would otherwise be the case.

Moreover, in a context of high and growing rates of unemployment both

nationally and in the Eastern Cape, the added Aids cost burden may pose a

further obstacle to job creation as companies attempt to shift the cost burden by

reducing staffing levels, or opting for capital substitution in order to protect their

profit margins. Public interventions to reduce HIV infection will be a critical

determinant of its impact on the labour market. As regards the efficacy of

preventative measures, the NMF/HSRC study(2002) reports that among Eastern

Cape respondents, 48.5 per cent reported public clinics and hospitals as the

main sources of condoms, while 20 per cent reported non-specific sources. This

is an indicator of the essential role of public facilities in prevention messages.

The same study reported that 58.5% of Eastern Cape respondents knew where

to obtain VCT (Voluntary counseling and testing) services.

There are, however, indications that the province has not been successful in

establishing public VCT facilities: in 2002 the Department of Health reported that

there were only 6 public VCT facilities in the province. This translates into a ratio

of 0.08 VCT facilities per 100 000 population in the Eastern Cape, the lowest in

the country. More recently, it was found that despite a public advertising

campaign on free HIV/Aids testing, half of the Eastern Cape’s clinics could not

provide this service. Officials ascribed this to both a lack of training among

nursing staff and a lack of equipment. Hence public management capacity

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remains a challenge to implementing preventative measures in the Eastern

Cape.

In sum, the negative impact of HIV/Aids on significant sections of the Eastern

Cape’s population has profound implications for the province’s labour market and

its economic prospects. These should be factored into provincial strategies and

plans in the areas of economic growth, employment creation and human

resource development.

Health Status of SA Population8

�� �� ���

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The figures on the above table are based on the number of people sick on the

day of the interview. The figures reflect all sicknesses and are not reflection

HIV/Aids prevalence. The Eastern Cape had nearly 12% of its population sick.

3.4 HRD Profile of the Eastern Cape

The Human Development Index (HDI)9 of the Eastern Cape (0.49) indicates high

levels of underdevelopment, corresponding with the high poverty levels in the

province. The highest levels of underdevelopment are measured for the former

8 Source: LSF Survey 2006

9 Sources: Stats SA 1995; 2002

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homeland areas, OR Tambo and Alfred Nzo DMs, with HDIs of 0.42 and 0.44

respectively. The previously advantaged Nelson Mandela Metro has relatively

high levels of development, with an HDI of 0.65. This disparity goes some way

towards accounting for the very high Gini Co-efficient (0.61) in the Eastern Cape

– which mirrors the national co-efficient of 0.60.

0

10

20

30

40

50

60

%

No Schooling PrimarySchool

Less M atric M atric HigherEducat ion

Levels

Unem ploym ent Rates by educat ion levels : SA & EC (1995 & 2002)

SA 1995EC 1995

SA 2002EC 2002

The table above speaks to unemployment rates according to the different

Education levels. The worrying trend has been the rapid increase of

unemployment of university graduates. The increase in unemployed graduates

has been dramatic in the last five years. A recent study conducted by the

University of Cape Town indicates that most unemployed graduates are those

from historically disadvantaged education backgrounds. Whilst there are

numerous reasons for this current situation, the research conducted shows that

most of these are graduates in the social sciences, humanities and some fields in

commerce. The number of unemployed graduates has grown significantly in the

past five years. JIPSA seeks (see section of SD initiatives) ways of absorbing

unemployed graduates into the economy while addressing the mismatch in

relation to the type of training offered to these students as compared to skills

needed by the job market.

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NMB Education levels10

NMB Education levels

7%

13%

8%

39%

24%

9%

Noschooling

Someprimary

Completeprimary

Somesecondary

Std10/Grade12Higher

The graph above is based on Census 2001; possibly the picture has changed.

The changes in the structure of the education landscape have also impacted on

the Nelson Mandela Bay. The restructuring of the Port Elizabeth Technikon, Vista

University and Port Elizabeth University into a single mega institution has created

a new momentum in the growth of the only local university.

Another factor which has potentially changed the education levels within the

NMB has been the 2002/03 restructuring of the further education and training

sector, which saw the merging of 152 colleges into 50 multisite-campus FET

colleges. For the NMB this resulted in 2-government funded FET colleges that

have multi-satellite campuses spread across NMB. Within the general education

and training band there has also been a consolidation of the technical schools.

Over and above the changes in the education sector the department of labour

has been spearheading several skills development initiatives. These initiatives

will have a major positive impact on the Nelson Mandela Bay education levels, as

these initiatives also include Adult Basic Education and skills programmes.

The migration of people from other parts of Eastern Cape and South Africa to the

NMB, in search of employment opportunities as well as better jobs, will also

potentially increase the number of people with post-secondary education.

10 Data source: Census 2001

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3.5 Education Landscape: Overview

The national Department of Education is responsible for education across the

country as a whole, while each of the nine provinces has its own education

department. However the planning and management of FET colleges is

managed by the National Department of Education instead of the Provincial

Department of Education.

South Africa has 12.3-million learners, some 386 600 teachers and 26 292

schools, including 1 098 registered independent or private schools. Of all

schools, roughly 6 000 are high schools (grade 7 to grade 12) and the rest

primary (grade 0 to grade 6).

The National Department of Education provides a national framework for school

policy, but administrative responsibility lies with provinces. Power is further

devolved to grassroots level via elected school governing bodies, which have a

significant say in the running of their schools. Private schools and higher

education institutions have a fair amount of autonomy, but are expected to fall in

line with certain government non-negotiable - no child may be excluded from a

school on grounds of his or her race or religion, for example.

The greatest challenges lie in the poorer, rural provinces like the Eastern Cape

and KwaZulu-Natal. Schools are generally better resourced in the more affluent

provinces such as Gauteng and the Western Cape. Illiteracy rates are high at

around 24% of adults over 15 years old (6- to 8-million adults are not functionally

literate), teachers in township schools are poorly trained, and the matric pass

rate remains low.

The South African government is targeting education for the poorest of the poor,

with two notable programmes. One is fee-free schools, institutions that receive all

their required funding from the state and so do not have to charge school fees.

These have been carefully identified in the country's most poverty-stricken areas,

and will make up 40% of all schools in 2007.

3.5.1 Education Bands

South Africa's National Qualifications Framework (NQF) recognises three

broad bands of education: General Education and Training, Further

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Education and Training, and Higher Education and Training. General

Education and Training runs from grade 0 to grade 9. General Education

and Training also includes Adult Basic Education and Training.

The table below shows the different education bands as well as the NQF

levels within each band and the qualifications that obtainable after

completion of each level. This section gives a brief overview of the

institutional capacity and gives some detail relating to the further education

training (FET) band. The FET education band is critical for the training of

unskilled and semi-skilled workers.

GRADES NQF

LEVEL

QUALIFICATIONS

8 Doctoral degree

Masters degree

Honours Degrees

7

Postgraduate diploma

General 1st degree

Postgraduate degree

6

Bachelors degree

1st Diploma

Higher Certificate

Hig

her

5

Certificate

12 4 Diploma

11 3 Certificate

Fu

rth

er

10 2

Gen

er

al

R-9 1 Grade 9/ABET level 4

3.5.2 Further Education and Training (FET) (NQF Level 2-4):

This band offers grades 10 to 12, and includes career-oriented education

and training courses. There are different types of FET institutions -

technical colleges, community colleges and private colleges. Diplomas and

certificates are qualifications recognised at this level. The FET also offer

DoE and Non-DoE courses, the non-DoE courses are not accredited by the

national Department of Education but could be accredited by professional

bodies or tailor made according to industry needs.

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Until 2002 there were 152 technical colleges in South Africa, these were

merged with other technical colleges, colleges of education and/or

manpower training sites to form 50 new Further Education and Training

(FET) colleges. The merger process did not change the distribution of

college campus sites across the provinces, however there were some

changes in the configuration of the college sector.

A key feature of the newly configured colleges is that they have multiple

campus sites as well as satellite campuses. A majority of FET’s are located

in rural, peri-urban, urban and metropolitan areas. The location spread of

the FET colleges is similar to that of Higher Education institutions, with the

exception of the Limpopo Province which has a higher number of FET’s

compared to the number of higher education institutions in that province.

The tables below are based on 2000 data.

3.5.3 DoE and Non-DoE Programmes in FETs:

FET’s can offer both DoE accredited as well as non-DoE programmes. The

provision of non-DoE programmes is a proxy indicator of the extent to which

FET colleges are responding to new market opportunities. Non-DoE

programmes accounted for about 12% (16 853) of the total full time

equivalents11 (FTE) (138 712); however this distribution varies across

provinces. The Western Cape, KwaZulu Natal and Limpopo Province each

had more than 15% of their students enrolled in Non-DoE programmes,

Mpumalanga and Eastern Cape had 5% or less enrolled in such

programmes.

FTE Spread: DoE and non-DoE

11 Full Time Equivalent (FTE) means the number of Students determined by the Department of Education in any Year to be the full-time equivalent of the actual number of Students enrolled in any educational, cultural or recreational activity

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2000 FET Programme Enrollment

0%

20%

40%

60%

80%

100%

KZN EC WC NC GP FS MP LP NW

non-DoE

DoE

3.5.4 National Certificate Vocational (NCV):

The NCV is a newly introduced three year programme. The first student intake was

in January 2007. It is a skills demand based programme. FET colleges are given a

go ahead to offer courses once they can prove that a specific skill is in short supply.

The NCV programme is offered in seven fields, including Electrical & Infrastructure

construction; Engineering and related design (Welding, Fitting and Machining and

Motor Mechanics) and Civil engineering construction. Learners are allowed one

language as well as a Maths or a Maths and Literacy course. Only students who

have successfully completed grade 9 can register in the programme. The NCV differs

from the noted programmes in that it has a 40:60 academic and practical percentage

split respectively.

The entry level of the NCV programme is at NQF level 2. At the end of the three

year programme, there are 3-streams. A learner can undertake a 2-year practical

training. The 2-year practical training is in the industry linked to the trade subject the

student specialised in. At the end of the 2-year practical training the student will

qualify as an artisan. Alternatively the students can continue and register for a

further 2-year in the college and undertake NQF level 5 & 6. The other alternative will

be for the student to attend university. However to be able to take this option the

student is required to have undertaken Maths and Science over and above the trade

specific courses. The NCV programme is currently offered by the government

funded FET colleges.

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3.5.5 Nelson Mandela Metro FET Colleges:

In 2004 the FET colleges were identified as critical in the alignment of education with

the world of work. The geographical location of some of the FET colleges in peri-

urban and rural areas also makes these institutions critical in the training of unskilled

and semi-skilled rural based workers. The Departments of Education and Labour

started a recapitalization program that includes infrastructure development as well as

revamping of training programs.

National treasury committed R1.5 billion for the recapitalization of colleges. This was

earmarked for the revamping of facilities and infrastructure. In 2005 the Minister of

Labour, Membathisi Mdladlana, and the Deputy Minister of Education, Mohamed

Surty, signed a collaborative agreement in the Eastern Cape with the Umsobomvu

Youth Fund’s skills development projects for youth through FET college sector.

The FET sector is indeed critical for the training and development of low-level skills.

CDC has existing partnerships with local FET’s and has networks with FET colleges

outside the NMB area, these can be utilised for either starting a training programme

or working in collaboration with these institutions for the training of unskilled and

semi-skilled workers. The metro has 2-government funded colleges and three

accredited training providers that can offer programmes in the sectors under review.

The East Cape Midlands and Port Elizabeth colleges are the two government funded

FET colleges. Local manufacturing companies, first tier industries and OEM's who

provide their own in-house training partner with FET colleges to offer fundamentals

and elective components of particular trades. There are a few local FET Colleges are

able to offer training of industry areas such as autotronics, welding, mechatronics,

electrical, etc.

3.5.6 NMB Private Training Providers

There are very few accredited Private Providers, within the sectors under discussion,

that have the capacity and facilities to offer FET level qualifications, learnerships and

skills programme in the region. Eastcape Training Centre (ETC) is the oldest and the

most established private training provider; it is located in the Port Elizabeth part of the

NMB. The Industries Education & Training Institute (IETI) also located in the Port

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Elizabeth has the capacity and facilities to offer FET level learnerships and skills

programmes.

The Ilitsha Training Provider is a newly MERSETA accredited training provider. The

Ilitsha training provider was initially an engineering shop that has developed training

capacity. They are accredited by the MERSETA. There are also a few NMB based

accredited training providers able to provide training within the specific sectors. Most

of these are within the Construction SETA.

3.5.7 NMB DoE Technical Schools

There are 10- DoE funded technical schools in the Metro. The schools are faced with

various resource related challenges. It is schools located in disadvantaged

communities that are highly affected by internally insurmountable resource

constraints.

3.5.8 Higher Education National Context:

South Africa has 23 higher education institutions, spread across the 9-provinces. Two

of these provinces do not have higher education institutions.

A matric endorsement is required for the study of university degrees, with a minimum

of three subjects passed at the higher, rather than standard, grade. Some universities

set additional academic requirements. A standard school-leaving South African

senior certificate is sufficient for technical qualifications and diplomas. The newly

introduced National Certificate Vocational (NCV) offered by FET colleges will allow

students who have completed NQF level 5 to enrol at university and pursue a degree

in a specific field.

There are three types of universities:

� 11 Traditional University’s, only 4-universities do not have a faculty of

engineering: NQF Level 5 upwards � 6 University’s of Technology, modeled similarly to the German

technical universities. However these are not yet at the same level as the

German Universities: NQF Level 3 upwards.

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� 5 Comprehensive University’s, offer Technikon and traditional

university programs: NQF Level 1 upwards.

Comprehensive University’s are a hybrid of traditional and technology university.

Their range of qualifications is the same as those offered in traditional universities as

well as universities of technology. The difference being the levels from which

qualifications can be offered. These universities offer short courses as well as course

from NQF level 1 up to the highest NQF level. This type of university is viewed as

potentially the most dynamic and could offer avenues for innovation as well as

flexibility in the training and development of both high-level and low-level skills. The

only comprehensive university in the Eastern Cape is the Nelson Mandela

Metropolitan University, located in the Nelson Mandela Bay.

National Picture: Location of Engineering Capacity (includes Built Environment): based on

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� � � � 5 � � �

12 Numbers in red denote Nelson Mandela Metropolitan University

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3.5.9 Nelson Mandela Metropolitan University:

As stated above South Africa have a number of international reputable universities.

The spread of these by province is reflected above. Whilst the Eastern Cape

Province has a fair number of universities, there are only 2-universities which offer

engineering degrees/diplomas. The Nelson Mandela Metropolitan University (NMMU)

is the only one located within the Nelson Mandela Metro. The Engineering Faculty of

the university has a long history of established partnerships with both private and

public sector organisations. As a comprehensive university, NMMU is strategically

configured to offer qualification at all NQF levels as well as enter into university-

industry partnerships for the establishment of new academic programmes.

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4 EDUCATION AND TRAINING CAPACITY: NMB

4.1 TECHNICAL SCHOOLS

Nelson Mandela Metro Technical Schools, there are ten technical schools that are

fully funded by the Department of Education located within the NMB region. Most if

not all these schools offer only technical subjects with a few offering academic

subjects. The teaching staff within these schools has engineering and/or technical

qualifications.

The schools however differ markedly in terms of their resource capacity.

Predominantly all the schools located within township settlements have inadequate

resources and in some instances no facilities of their own. There are schools which

attend the practical training aspect of their programmes in other schools. Newton

Technical School is viewed as the most well resourced school in the Nelson Mandela

Bay, with sponsorship from the corporate sector.

With effect from 2006, technology was introduced as a compulsory subject in all

technical schools. The subject was been introduced from grade 8. Two of the ten

schools do not offer all four technical subjects. Gelvandale Technical School does

not offer electrical technology and Otto Du Plessis does not offer civil technology.

Table reflects numbers of students taking subjects in 2007 in Technical Schools: NMB

region

Electrical

Tech

Mechanical

Tech

Civil Tech EGD Technology

Grade 8 1250

Grade 9

1545

Grade 10 179 444 136 680

Grade 11 93 307 89 383

Grade 12 112 220 108 345

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4.2 FURTHER EDUCATION AND TRAINING COLLEGES

The East Cape Midlands and Port Elizabeth College are the 2-FET colleges located

in the Nelson Mandela Bay area. Based on the 2000 FET college information the two

colleges account for had 5264(33.7%) headcounts of the 15873 headcounts

registered in FET’s in the Eastern Cape Province. The East Cape Midlands is

located in Uitenhage part of the NMB whilst the Port Elizabeth College is located in

the Port Elizabeth area. Both these colleges are predominantly funded by

government. Unlike most FET colleges in the Eastern Cape, the two colleges are

located at the heart of the Eastern Cape’s automotive industry.

FET Colleges: EC Province13

F ET C o l l eg es : EC Pr o v i nce

27%

11%

26%

7%

7%

9%

7%6%

Port Elizabeth Public

Eastcape M idlandsPublic

Buffalo City Public

Lovedale Public

King Sabata DalindyeboPublic

Ingwe Public

Ikhala Public

King Hintsa Public

4.2.1 FET Programmes

Until 2006 the programmes offered by the colleges were at the ABET level and

further education (N1-N3) and post N3-level. Within the levels there are programmes

that are DoE accredited as well as non-DoE accredited. The table below reflects the

actual number of students enrolled for DoE and non-DoE programmes.

13 Data Source: National Business Initiative Study, 2000:

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FTE Program Spread: EC FET14

6411

8610

724128

71358738

020004000

60008000

10000

DOE FTE’s Non-DOEFTE’s

Total FTE's

FTE Program m e Spread: Eas tern Cape FET (2000)

FurtherEducation

PostN3Level

4.2.2. PUBLIC FET COLLEGES: NMB

4.2.2.1 PORT ELIZABETH COLLEGE (PEC)

Port Elizabeth Public FET College has seven sites located at different areas of the

Metropole. The sites include Algoa, Iqhayiya, Dower, Heathpark, Erica, Russell

Road and Victoria. It attracts students from a wide market in both the Metropole

region and in the wider outcastes of the Eastern Cape Province.

The College offers a diversified service in line with labour market needs of both the

metropole region and the Eastern Cape Province. The service offering is composed

of a variety of programmes implemented as responsive means to industry/community

needs. These programmes include Business Studies, Engineering studies, Utility

Services, Art and Design, Learnerships and Skills Training programmes.

ENGINEERING STUDIES: The different campuses are organised according to

programme and course offerings. There are two campuses that focus on

Engineering; these are Iqhayiya & Russell Road Campuses including the NCV

(new programme) & Bridging Course in Engineering.

The courses range from:

14 Data Source: National Business Initiative Study, 2000

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� Information Tech. & Computer Science � Electrical Infrastructure Construction (Electrical) � Civil Engineering Construction (Basic Construction Plumbing OR Basic Masonry

& Tiling Construction) � Engineering and Related Design (Mechanical)

� Fabrication & Extraction � Automotive Repair & Maintenance � Fitting & Turning

Current course levels offerings: Iqhayiya Campus (Struandale)

� Current N2, N3, N4, N5, N6 Engineering � Engineering CCL / Part-time (Only N1-N6): � Engineering CCL / Part-time: Welding, Electrical and Motor Skills

As explained somewhere else in the document the NCV programme is a new programme

and specialisation in colleges are informed by the locality within which such FET colleges

are located.

For PE College the NCV Programme offerings are according to the table reflected below.

PROGRAMME NC(V) Russell Road Campus Iqgayiya/Algoa

� Engineering & Related Design � Electrical Infrastructure Construction � Civil Engineering Construction

x

x

x

� ICT � Management � Finance, Economics & Accounting

x

x

x

� Tourism � Hospitality x

x

Other critical scarce kills offered are:

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� Engineering & Related Design: Fabrication and Extraction, Manufacturing &

Assembly � Civil Engineering & Building Construction. � Electrical Infrastructure Construction

4.2.2.2 EASTCAPE MIDLANDS COLLEGE (EMC)

The College has partnered with various business and SETAs in providing training

courses, academic focus as well as a skills focused courses to part time students.

The college has also partnered with some of the business for workplace experience

to their learners. The nature of these partnerships will be discussed in detail when

more information is received.

The table below reflects some of the academic programmes offered by the college on

a part time basis and the levels at which these course are offered. However the

college is prepared to consider these for full time students should there be a high

demand for them. The table reflects the intake in each course at different levels.

Their student enrollment is done in trimester system, with the college having a

trimester intake system.

" % % & 0 � � �1 �� ���1 � 2 ��� 3 � �� � � �� � 0 � � �� � �( � � �� � ��� � � � � 1 ' �

� � ' � � " � � # � � $ � � � � & �

� ��� ����1 � 4 � � � �

� �5 ��1 �

! % � ! % � ' % � ' % � ' % � ' % �

6 �� � �5 �� � 4 �

7 � � �� �

! % � ! % � ' % � ' % � ' % � ' % �

� � �� 4 � � � � � �

� �� ����� �

! % � ! % � ' % � ' % � ' % � ' % �

� � �� ������� 0 �

! % � ! % � ' % � ' % � ' % � ' % �

Engineering Skills Training Short courses:

� ��� ����1 � � � �

15 These are students enrolled in the courses.

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7 � � ��1 0 � � � �

� � �� ����� � � � �

� � �� � ���� 0 � � � �

� � �� � ���� 0 � � � �

Learnerships Programme: In addition to its normal student intake the college is also

contracted by a range of companies including the CDC to be a training service

provider for some of the learnerships. The facilities can currently accommodate only

25 learners at any given time in a workshop. The learnership programme is also

offered to private students that are students paying out of their own pockets.

The table below reflects the current learnerships as of 31 March 2007.

Current Learnerships: EMC

COMPANY LEARNERSHIP PROGRAMME NO

AIDC MECHATRONICS L3 16

MECHATRONICS L4 12

COEGA FITTING & MACHINING L2 30

FITTING L2 32

MACHING L2 42

MECHATRONICS L2 18

WELDING L2 8

CONTINENTAL Machining L2 24

HELLA ACMA L2 12

SHATTERPRUFE ELECTRICAL ELECTRICAL L2 2

VOLKSWAGEN Autotronics L4 18

Electrical L3 10

FITTING L3 12

FITTING L4 12

MACHINING L4 6

Maintaining Vehicles L3 13

MECHATRONICS L4 14

MECHATRONICS L4 15

TOOLING L4 6

GRAND TOTAL 302

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4.3 PRIVATE TRAINING PROVIDERS: Accredited

NMB Public and Private training providers offer a range of courses. The course

offerings predominantly reflect the industries that operate in the metro. The only

major concern is that more than 60% of the courses are offered by the private

training providers are at NQF Level 2.

4.3.1 EASTCAPE TRAINING CENTRE (ETC)

This training provider is primarily accredited by the Construction Education and

Training Authority (CETA) with secondary accreditation from the CHIETA, ESETA

and MERSETA. Thus the range of programmes ETC us able to offer are accredited

by more than one SETA. For instance their electrical programmes are listed across

three ESETA, MERSETA and CHIETA. The centre offers day and evening classes in

some of the following courses. The training provider offers training beyond the

borders of the Nelson Mandela Bay as well as outside the Eastern Cape. It is able to

offer such due to its extensive resources. It has mobile units that allow it to provide

training off-site and in rural areas.

Staff Capacity: The College has a relatively large staff complement. This is

influenced by the wide range of programmes offered. There are 3 Fitting and

Machining; 4 Fabrication; 3 Welding; 3Electricall; 1 Rigging; 10 Driver / Operator; 6

Bricklaying; 4 Carpentry; 2 Plumbing; 2 Painting; 4 Shuttering; 3 Steel Fencing ; 6

Concrete Handling, 3 Pipelaying staff members.

ETC Skills Programmes & Learnerships Offered

ACCREDITED PROGRAMMES NQF

CHIETA

MECHANICS: Chemical Turning 2

MECHANICS: Chemical Fitting 2

MECHANICS: Chemical Fitting 3

MECHANICS: Chemical Fitting 4

MECHANICS: Chemical Boilermaking 2

MECHANICS: Chemical Boilermaking 3

MECHANICS: Chemical Welding 2

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MECHANICS: Chemical Welding 3

MECHANICS: Chemical Welding 4

ELECTRICS: Chemical Electrical 2

ELECTRICS: Chemical Electrical 3

CETA

NC: Construction Carpentry 3

NC: Construction Masonry 3

NC: Construction Painting 3

NC: Construction Plumbing 3

Construction Contractor - Labour Intensive 2

Construction Processes - Labour Intensive: 4

NC: Community House Building 2

NC: Construction Contracting 2

ESETA

NC: Electrical Engineering Level 2 2

NC: Electrical Engineering Level 3 3

MERSETA

NC: Manufacturing, Engineering and Related

Activities 1

NC: Automotive Component Manufacturing and

Assembly 2

NC: Automotive Repair and Maintenance 2

NC: Engineering Fabrication 2

NC: Welding Application and Practise 2

NC: Mechanical Engineering: Machining 2

NC: Mechanical Engineering: Fitting 2

NC: Mechanical Engineering: Fitting and Machining 2

4.3.2 INDUSTRIES EDUCATION & TRAINING INSTITUTE (IETI)

The IETI is a fully BEE complaint company. It has full accreditation from several

SETAs. Its primary accreditation is with the Energy SETA, with secondary accreditation

from the merSETA and CETA. The institute has also applied for re-accreditation with

Theta and Fieta. The institute also registered with the Department of Labour. Under the

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DoL skills courses it offers skills courses in the trades mentioned below as well as in

the up-holstery and Furniture Production & Cabinet Making.

The centre has established partnerships with some professional associations such as

the Electrical Contractors Association (ECA) as well as with civil society organisations

such as the Zionist Christian Church. They continue to work in the rural areas with the

Department of Labour by assisting SMME development of the poorer communities and

thereby assisting to the growth of these people.

Programmes offered: � Electrical Apprenticeship � Electrical Learnership from NQF Level2-4 � Refrigeration Learnership from NQF Level 3-4. � Welding Learnership from NQF Level2-4 � Electrical Appliance Repairs � Domestic Refrigeration � Bricklaying & Plastering Learnerships NQF Level 3 � Plumbing Learnership from NQF Level 2-3

Facilities/Workshop and Training Capacity: The workshop capacity is equipped to

handle 120 students per day, with a ratio of 15:1 learners per instructor.

Skills Programmes and Learnerships:

Learnership Programme NQF level No

Welding 2-4 270

Electrical 2-4 28

Refrigeration 2-3 22

ECA Learnership 2-4 100

Coca Cola 2-3

Zionist Christian Church Short Courses 72

DoL Courses (Below) 150 (Overall of the

courses listed below)

Cabinet Making

Electrical Modules 0-6

Furniture Production

Bricklaying

Plastering

Welding

Catering & Baking

Plumbing

Electrical Appliance Repairs

Currently these courses are

short courses. The DOL is in

the process of updating the

welding and Electrical to Unit

Standard Based type courses

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Staff Capacity: We currently have 2 fulltime Instructors Qualified in Electrical and

they are registered Assessors with Energy Seta & EDTP Seta. We then have 3

Contract employees on 6 Month Contracts. 2 are qualified Electricians and 1 is a

qualified welder. The welder is a registered assessor with MERESTA. The institute

also has 3 consultant instructors. One is a qualified Welder, the other a Welder with

15 years experience no qualification expected in the Electronics filed and the third

one is a qualified carpenter and a qualified assessor.

Infrastructure & Equipment: IETI: A centre into which the institute move in

September (2006) has a floor capacity of 2500sqm. The centre has 7 lecture rooms

and six of these are occupied full time. Each lecture room has a capacity of 20

learners max, but only 15 are taken at any given time.

The institute has various policies in place that ensure that all facilities and equipment

is continuously maintained. Most of the instructors have a technical background and

are thus able to respond to general maintenance demands. The institute has

infrastructure that enables it offer off site training. Most of the DoL skills programmes

are offered off site with a ratio of 1:12. These would be for the DOL courses. The

workstation capacity differs. There are 60 workstations for Electrical; 60 workstations

for Welding; 12 workstations for Refrigeration and 12 Workstations for Furniture.

4.4 OTHER PRIVATE TRAINING PROVIDERS: CETA Accredited

The CETA utilises NQF accredited providers for its learnership programmes.

Training providers within the NMB region accredited by the CETA are also accredited

to offer Legacy Programmes for the training of the unemployed by the Department

of Labour.

The tables below reflect a list of training providers found in the NMB area as well as a

list of the legacy programmes for the training of the unemployed. Only well

resourced and equipped training providers are able to offer a wide variety of

programmes. The smaller training providers are accredited to offer few programmes.

The list of the NQF accredited programmes is attached.

NQF Accredited Training Providers:

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Amokoro Training Coastal (Pty) Ltd

Eastcape Training Centre

Lukhanyo Edu-Train College

N D Training Centre

Perfect Circle FET

Phambili Training & Management

Phumelela Skills Training & Consultants

Qhamani Training Centre

Buyisela Skills Centre

CREATE

Jabez Training Centre

Khanyile Training Centre (Pty) Ltd

P. E. Child and Family Welfare Society

Uitenhage Self Employment Centre

4.5 SKILLS PROGRAMMES AND LEARNERSHIPS: Additional

4.5.1 Construction Industry Training Providers:

The programmes listed below reflect those offered by the various training providers in

the region. The level at which these are offered is predominantly at level 2. Most of

the training providers offer training to the unemployed.

Legacy Programmes offered by NMB Based Training Providers

• Bricklayer And Plasterer;

• Carpenter;

• Plumber;

• Shutterhand Grade 3;

• Painter And Decorator;

• Erect Fencing;

• Combined Concrete Hand;

• Joinery And Wood machinist;

• Waterproofer;

• Ceiling & Partitioning Erector;

• Shopfitter; Road works;

• Basic Construction Hand;

• Underground Services –Water;

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• Entrepreneurial Development;

• Plasterer And Tiler;

• Labour Intensive Training- Modern Supervision;

• Block laying;

• Supervisor Core Modules;

• Entrepreneurial Development Course;

• Basic Leadership Course;

• Road Works Skills Grade 3;

• Drainage And Services Skills Grade 3;

• Construction Site Practice & Water Reticulation Skills.

4.6 Engineering Infrastructure & Facilities: NMB Region

For the government funded Further Education and Training facilities, there is

currently a massive infrastructure and facilities upgrade. The funds have been put

aside specifically for the upgrading of engineering facilities.

The Qhayiya campus of PE College has been allocated more than R5-m with funds

put aside for such. With the demand of skills, as reflected above it is critical that the

NMB has adequate facilities to ensure that it is able to train both high-level and low-

level skills. The final report will have a detailed breakdown of the facilities available.

There will also be a discussion on the state of training facilities owned and turn by

business. EastCape Midlands FET College Facilities (appendix)

4.7 Nelson Mandela Metropole University (NMMU)

Apart from the presence of small satellite campuses in the NMB, the NMMU is the

only local university in the Nelson Mandela Bay area. Institutional Operating Plan

(IOP) provides a clear indication of future priority and growth areas for the university.

These are summarised in the table below.

NMMU’s Overview of priority and growth areas metro level16

� � � �� � ��� � �� � � � � 8 �1 � ( �� ��� � � �

* � 1 ' 0 � � � % ( �� ( 1 �# � � � � �& - % / � * * � % ( � * �

16 Source: NMMU Institutional Operational Plan 2006

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* $ ( < � * � � � ( � �* � 0 � % - * = � ' � % � % � � < � * > �3 � @ � � � * > �� � - < � 0 � * > �� � � � ' - ; � 0 � > �� ( � - ; ) > �� % ; � * � � 0 * > �$ � 3 6 �� � 0 � - % ( � 0 * > � ; - � 0 ' � ' - � �� ( 1 � ; - % , & - % 0 � * * � ( ; ��

* � ( < � - % ( � � ( � �� � ( � ; � � � ( � �� ( 1 �0 % ( * � - < � � � % ( �* � % � * � � �: % ( � �� � ( � ; � � � ( � �* � % ( * � - ' 0 � � % ( ��* - 0 � � � � 0 � ' - � �* � ( � ( 0 � �� ( 1 � 1 � � ( � * � - � � � % ( �# ' � � ( �! � * % ' - 0 � * �� � ( � ; � � � ( � �* � � � �� ' * � ( � * * �� � < � % & � � ( � �* � � 0 � � ( � 0 � > �� � 0 � - � 0 � > �" - % 0 � * * > �$ ( 1 ' * � - � � > �� � � � � 0 � �� ( 1 �� � < � �� ( ; � ( � � - � ( ; ��* � � � � � 0 � �, �/ � ( � > �& % ) � � - * > �& � � - � � 0 � ' � � 0 � > �� � ( � - � * �A �� � � � * �" � � - % 0 � � � � 0 � �$ ( 1 ' * � - � � * = �� � > � � * �� ( 1 �

� � � � � 0 � �

* � � ( ' / � 0 � ' - � ( ; �* 3 % ' - � * � �* � % 0 � � �� � � 1 * �* � % 0 � � % < � - ( � � ( � �

The NMMU has therefore strived to conceptualise and define its academic growth

areas in response to national, provincial and local policy and economic imperatives.

However, in specifying these growth areas, the NMMU’s notion of responsiveness

and engagement is not limited to economic responsiveness, but includes an active

attempt to contribute meaningfully to the challenges of a developing society in a

sustainable manner, including poverty alleviation, education, healthcare, and

enhanced systems of governance particularly at the local level.

NMMU Academic Growth Areas:

• Mechatronics and manufacturing technology for the automotive sector

• Chemical, rubber, polymer and nano-technologies

• Optic fibres and electron microscopy

• Pebble bed nuclear technology

• IT security, programming and software development

• Infrastructure development

• Building, construction management and housing

• Architecture and architectural technology

Motivation: Of critical importance to both the Eastern and Southern Cape, ASGISA

indicates that the single greatest impediment of economic growth is the shortage of

skills – including professional skills such as engineers and scientists, managers and

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financial personnel, project managers; and skilled technical employees such as

information technology (IT) specialists.

Analysis of the value chain in the different manufacturing sectors in the Eastern Cape

identifies major gaps and opportunities in the market. Most of these opportunities

require higher levels of technology, links to research and development, and skills

training. Automotive components, plastics, electronics and information and

communication technologies, textiles and clothing, are key opportunities.

The NMMU is known for its existing strength in engineering, specifically mechatronics

and manufacturing technology for the automotive industry. Furthermore academic

programmes, research capacity and engagement activities at the NMMU in

engineering, architecture and the built environment are already contributing to

addressing these infrastructural development needs of the Province.

Faculty of Engineering, the Built Environment and Information Technology

� School of Engineering - Departments: Civil Engineering; Electrical

Engineering; Mechanical Engineering; Mechatronics; Industrial Engineering

o Entity: Institute for Advanced Manufacturing and Engineering

Research

� School of the Built Environment - Departments: Construction Management;

Quantity Surveying and Building

o Entities: Centre for Building Research and Support; Centre for the

Study of Construction Processes

� School of Information and Communication Technology - Departments:

Information Technology; Applied Informatics

o Entity: Institute for Information and Communication Technology

Advancement

Table: 2005 Academic Year Graduates: Engineering Faculty

QUALIFICATION OBTAINED NUMBER NATIONAL DIPLOMA: INFORMATION TECHNOLOGY 3

NATIONAL DIPLOMA: INFORMATION TECHNOLOGY 23

NATIONAL DIPLOMA: INFORMATION TECHNOLOGY 27

NATIONAL DIPLOMA: INFORMATION TECHNOLOGY 1

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NATIONAL DIPLOMA: BUILDING 4

NATIONAL DIPLOMA: BUILDING 25

NATIONAL DIPLOMA: ENGINEERING : CIVIL 1

NATIONAL DIPLOMA: ENGINEERING : CIVIL 28

NATIONAL DIPLOMA: ENGINEERING : ELECTRICAL 61

NATIONAL DIPLOMA: ENGINEERING : COMPUTER SYSTEMS 3

NATIONAL DIPLOMA: PRODUCTION MANAGEMENT 13

NATIONAL DIPLOMA: PRODUCTION AND OPERATIONS MANAGEMENT 4

NATIONAL DIPLOMA: ENGINEERING : INDUSTRIAL 15

NATIONAL DIPLOMA: ENGINEERING : MECHANICAL 32

NATIONAL DIPLOMA: ENGINEERING : METALLURGY 1

BACCALAUREUS TECHNOLOGIAE: INFORMATION TECHNOLOGY 1

BACCALAUREUS TECHNOLOGIAE: INFORMATION TECHNOLOGY 18

BACCALAUREUS TECHNOLOGIAE: INFORMATION TECHNOLOGY 23

BACCALAUREUS TECHNOLOGIAE: QUANTITY SURVEYING 26

BACCALAUREUS TECHNOLOGIAE: CONSTRUCTION MANAGEMENT 6

BACCALAUREUS TECHNOLOGIAE: ENGINEERING : CIVIL 4

BACCALAUREUS TECHNOLOGIAE: ENGINEERING : CIVIL 2

BACCALAUREUS TECHNOLOGIAE: ENGINEERING : CIVIL 9

BACCALAUREUS TECHNOLOGIAE: ENGINEERING : ELECTRICAL 12

BACCALAUREUS SCIENTIAE HONORES IN CONSTRUCTION MANAGEMENT 4

BACCALAUREUS SCIENTIAE IN CONSTRUCTION STUDIES 12

BACCALAUREUS TECHNOLOGIAE: PRODUCTION MANAGEMENT 6 BACCALAUREUS TECHNOLOGIAE: PRODUCTION AND OPERATIONS MANAGEMENT 11

BACCALAUREUS SCIENTIAE IN CONSTRUCTION ECONOMICS 17

BACCALAUREUS SCIENTIAE HONORES IN QUANTITY SURVEYING 5

BACCALAUREUS TECHNOLOGIAE: ENGINEERING : INDUSTRIAL 16

BACCALAUREUS TECHNOLOGIAE: ENGINEERING : MECHANICAL 9

BACCALAUREUS TECHNOLOGIAE: QUALITY 19

MAGISTER SCIENTIAE IN THE BUILT ENVIRONMENT 1

MAGISTER SCIENTIAE IN THE BUILT ENVIRONMENT 3

MAGISTER SCIENTIAE IN THE BUILT ENVIRONMENT 1

MAGISTER TECHNOLOGIAE: INFORMATION TECHNOLOGY 5

MAGISTER TECHNOLOGIAE: BUSINESS INFORMATION SYSTEMS 1

MAGISTER TECHNOLOGIAE: ENGINEERING : ELECTRICAL 3

MAGISTER TECHNOLOGIAE: ENGINEERING: INDUSTRIAL 2

DOCTOR TECHNOLOGIAE: ENGINEERING : ELECTRICAL 3

DOCTOR TECHNOLOGIAE: ENGINEERING: MECHANICAL 2

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5 OVERVIEW OF SKILLS ANALYSIS: Eastern Cape

5.1 NATIONAL OVERVIEW

Skills shortage in the broad field of Science, Engineering and Technology is not

peculiar to South Africa. With regard to South Africa there are various factors that

can account for the current skills shortage. Chief amongst these factors are policy

related factors. Recently there have been concerted efforts aimed at addressing

skills shortage.

The opening of the South African market coupled with economic growth within South

Africa and Southern Africa as well as the global expansion in mining and

infrastructure economic activities have also impacted hugely on the demand, mobility

and fluidity of engineering and technical skills in particular. These economic shifts

have increased the extent of the skills shortage in South Africa.

Changes in how corporations and companies conduct business have also

contributed to the current skills shortages. For instance the increasing global trend of

outsourcing engineering and technical aspects of business has also had a huge

negative impact on the South African engineering skills. International recruiting

agencies have targeted the South African engineer for some of these mega global

projects. An international study conducted by Booz Allen Hamilton/NASSCOM: 2006

indicates that Europe and the United States are facing a severe shortage of skilled

hi-tech workers, especially engineers. The shortage is due to an ageing workforce as

well as the 10-year pattern in which very few students pursued an engineering

profession.

Internationally the drop in the number of students pursuing engineering qualifications

has also had its impact. In South Africa the current schooling system produces very

few learners that are can qualify to undertake an engineering or technical

qualification, resulting in very few students registering for such professional

qualifications. The situation is further worsened by the throughput rate within these

qualifications. On the international front, Europe and the US are also producing far

less students, still outperforming South Africa, with these qualifications, whilst China

and India are the leading global producers of far more knowledgeable workers within

the engineering profession. India is also a global leader in producing approximately

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95 000 graduates a year in electrical, information technology and computer- science

engineering.

5.2 Registered Engineers in South Africa17

As discussed under the section on South African Higher Education context, South

Africa produces far fewer engineering students. Statistics posted on the Engineering

Council of South Africa website reflects a very gloomy picture of registered engineers

in South Africa. Of major concern are the few numbers of African Asian and

“Coloured” engineers across the professional and candidate levels.

Table: ECSA website

W African C Asian TOTAL

Professional Engineer

Civil 6054 182 30 93 6359

Electrical 2404 213 28 136 2781

Electro Mechanical 8 3 2 1 14

Industrial 149 5 0 3 157

Mechanical 2758 94 17 66 2935

TOTAL

1137

3 497 77 299 12246

Candidate Engineer

Civil 599 195 7 86 887

Electrical 397 304 12 112 825

Electro-Mechanical 17 10 0 3 30

Industrial 74 6 0 1 81

Mechanical 590 207 0 67 864

TOTAL 1677 722 19 269 2687

Professional Technologists

Civil 1090 68 29 108 1295

Electrical 840 68 16 31 955

Industrial 9 1 0 3 13

Mechanical 447 12 9 12 480

Engineering Design And

Draughting 5 0 0 0 5

TOTAL 2391 149 54 154 2748

17 Source: Engineering Council of South Africa

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Candidate Engineering Technologists

Civil 172 177 11 57 417

Electrical 67 135 5 30 237

Industrial 3 6 0 0 9

Mechanical 52 79 3 7 141

TOTAL 294 397 19 94 804

Engineering Tech Masters

Civil 124 0 0 1 125

Electrical 166 0 0 0 199

Engineering Design And

Draughting 17 0 0 0 0

Industrial 2 0 0 0 2

Mechanical 108 0 0 0 108

TOTAL 417 0 0 1 418

Registered Engineering Technicians

Civil 296 16 8 12 332

Electrical 406 28 16 21 471

Engineering Design And

Draughting 5 0 0 0 5

Industrial 5 0 0 0 5

Mechanical 157 11 4 6 178

TOTAL 869 55 28 39 991

Candidate Engineering Technician

Civil 97 345 14 54 510

Electrical 83 331 5 41 460

Industrial 3 11 0 0 14

Mechanical 49 146 3 20 218

TOTAL 232 833 22 115 1202

Professional Technologist

Civil 153 79 14 17 263

Electrical 446 487 43 70 1046

Industrial 2 0 0 1 3

Mechanical 79 47 8 11 145

Electro-Mechanical 14 1 0 0 15

TOTAL 694 614 65 99 1472

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5.3. MERSETA Sectors

This section provides an analysis of the metals sub-sector of manufacturing sector.

The metals sector in South Africa currently employs approximately 380,000

employees, of which 82% are located in small companies, 11% in medium size

companies and the remainder in large companies. The provincial absorption of

employment is located in Gauteng 77.9%, 7% in KwaZulu-Natal and Western Cape

respectively. The metals sector is the most labour-intensive sectors of manufacturing

with 64% of total employment being in the un-skilled and semi-skilled labour, the

remaining component being skilled and highly skilled labour.

In terms of employment types the sector has 90% of personnel employed

permanently, 8% outsourced and 2% temporary. The prediction is that this will

change in time as most employers want to minimise labour contractual obligations.

Large firms tend to maintain 98% of personnel on a permanent basis while medium

size firms have 20% outsourced and 80% permanent. Employment in the metals

sector18 for the Eastern Cape (EC) currently stands at 7618. This is only 1.95% of the

national metals sector. This is an indication of the scale of the metals sector in the

EC. The occupational make up if this total is illustrated in the graph below.

Total Employment in Metals Sector in the Eastern Cape (2006)

342 206

713

118

762536

3958

175

808

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Senior

Officials andM

anagers

Professionals

Technicians

and Associate

Professionals

Service

Workers,

Shops and

Market S

alesW

orkers

Craft and

Related

Workers

Clerks

Plant and

Machine

Operators andA

ssemblers

Agricultural

and Fishery

Workers

Labourers andR

elatedW

orkers

1 2 3 4 5 6 7 8 9

Metal

The Eastern Cape provides a relatively small proportion of employment in the

national metals sector. Relative to the national Formally Employed as provided in the 18 Sourced from MERSETA Workplace Skills Plans from August 2006

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LFS 200419 the proportion of employed persons by occupation category is outlined in

the table below.

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The table above shows that there is no correlation between the proportional

employment by occupational category between the Formally Employed persons in

SA and those employed in the metals sub-sector. This can be illustrated by the fact

that a far greater number of persons employed in the metals sector are in the Plant

and Machine Operator occupational categories than in the total Formally Employed

category. The WSP information indicates that the industry is reliant on approximately

50% of the workforce being in the semi-skilled occupational categories. A relatively

small portion of Service, Support and Co-ordination staff (1.5%) is located in the

metals industry in the EC. There is vast difference with the total formally employed

sector of 13.1%. This can be compared to the national metal industry figure of 7.2%.

An analysis of the skills shortages in metals sector20 indicates the following:

19 Labour Force Survey 2004(updated figures are available in the LFS March 2006) 20 Source: Secondary Research Findings: General Employment Trends, MERSETA 2006

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Scare skills

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The Metals Chamber members of the MERSETA at a workshop in March 2006

identified specific scarce and critical skills. The analysis indicates that the industry is

suffering from a gradual loss of skills. There is an absence of formal training in basic

foundry skills, tooling, and rapid design technologies.

The skills constraints are particularly severe for smaller firms, which lack resources to

provide on-going training in new techniques and production methods while a number

of firms have developed their own in-house training programmes in both basic

foundry skills and more advanced skills specific to the type of casting process used, a

major problem with these independent initiatives is that they are not formally

recognised or accredited.

A key concern raised is that a lag time exists between training and having a qualified

person. The key factor that needs to be considered is that cost of training in the

metals sector is high as it takes a long time to obtain specialised training. And hands-

on experience is needed to complete training. .

National Picture: identified scarce skills and levels

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5.3 Construction Sector21

The Construction Industry Development Board undertook an investigation in 2006 to

assess whether there was likely to be a skills deficit in the construction and

engineering fields as a result of the proposed increases in infrastructure investment

over the next decade. The overwhelming conclusion of the investigation is that a

comprehensive challenge exists to restore or replace the skills pipeline that produces

the wide range of skills required by the construction and engineering industries, in

order that the country’s longer-term infrastructure delivery objectives can be met.

According to the CIDB 2006 discussion document formal employment in the

construction sector decreased progressively in the 1990s until the low of 2001 when

the industry had lost more than 200 000 jobs. An increase in infrastructure

investment since 2003 has seen a steady increase in the number of jobs created and

the accompanying challenge to secure requisite skills. This challenge has been

exacerbated in recent times by the announcement of the Gautrain, infrastructure for

the 2010 FIFA World Cup and government’s R372bn infrastructure investment 21 Discussion is borrowed from the CIDB 2006 skills supply in the construction industry.

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programme. The strong focus of the EPWP on labour intensive construction also

places extra demands for qualified supervisors and managers.

Historically, as evidenced by graduation rates in construction and engineering, skills

development has always lagged behind increases in construction spend. While it is

reasonable therefore to assume that industry will respond to meet the growth in skills

demand, this current growth phase requires substantive interventions involving a

wide range of stakeholders, because:

� The current growth in infrastructure investment has come on the back of

lows in the industry that have not been experienced for decades; � Labour practices of the past decade have resulted in fundamental

structural changes favouring labour brokering, resulted in declining

investments in skills development; and � There have been fundamental changes, and breakdowns, in the skills-

supply pipeline.

An analysis of the supply of skills in the learnership, further education and training

(FET) and higher education and training (HET) sectors shows that increasing

numbers of learners are entering training institutions – which could suggest that the

supply should more than adequately cover the increased demand over the next five

years.

However, taking into account the low throughput ratios, lack of access to experiential

training for qualification purposes and non-accreditation of certain curricula together

with normal attrition rates as well as changes in work processes, the ability of the

supply pipeline to meet the required demand is far from certain. In order to interpret

the additional demand for skills, and to place the skills challenge in context, it is

necessary to differentiate between scarce skills and critical skills:

The term “scarce skills” refers to those skills which are in short supply but which can

be obtained through short-term targeted training (such as many artisan skills); while

“critical skills” refers to particular high-level skills within certain occupations (e.g.

experienced contract managers, high-quality metallurgical welders). The largest

demand for skills is in the scarce skills categories, which can be met through short-

term targeting training. Critical skills, on the other hand, are required in much fewer

numbers, but require up to 10 to 20 years of experience.

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5.4 OVERVIEW: SKILLS SHORTAGES IN THE NMB22

The most recent skills survey conducted within the NMB area has been the Skills

Audit of the Motherwell area concluded in 2004 by the Faculty of Health Sciences at

the University of Port Elizabeth. This sub-section borrows heavily from this 2004

research project. A skill needs analysis conducted on the planned mega projects to

take place in the Metro suggests that the skills shortages identified by the metals

industry will be required in all the planned mega projects.

5.4.1 Electrical / Mechanical Skills:

The survey conducted in Motherwell found that an estimated 11620 or 9.3% of

people in this area had some electrical or mechanical skills, while 1.8% had

qualifications in the skills category. While a slightly lower percentage of people in the

younger age categories possessed these skills that those in older age categories, it is

not significant. The percentage of males with electrical of mechanical skills (16.6%)

was significantly higher than among females (3.7%), while 4.6% of disabled people

compared with 9.5% of the rest indicated so.

Among full time employed people, 14.0% had electrical or mechanical skills, among

self-employed people it was 13.1%, while among part time employed and

unemployed people it was 11.8% and 8.1%, respectively. While 44.6% of those with

skills in this category had 1 - 4 years' experience, 25.6% had 5 - 9 years and 18.5%

had 10 - 19 years experience. The vast majority (85.8%) of those with qualifications

in this field obtained them since the advent of the millennium. Of the projected 11620

people with electrical or mechanical skills, 3180 indicated that they had skills in a

basic electrical background, 2680 had skills related to the work of electricians (it does

not necessarily mean that they are electricians, though) 2180 had skills relating to

motor mechanics and 920 had spray painting skills.

22 Source: 2004 Motherwell Skills Audit Motherwell, conducted by HDRI, UPE

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5.4.2 Manufacturing skills:

In the same survey an estimated 13.6% of the population aged between 18 - 65

years old had manufacturing skills, representing 15440 people. Although a larger

percentage of people (19.6%) in the 35 - 49 year old category have manufacturing

skills, it is especially the younger age bracket where the percentage of people with

these skills are low (9.3%). Almost twice the percentage of females have

manufacturing skills (16.7%) compared with men (9.2%), while the percentage of the

disabled (12.3%) with manufacturing skills closely reflects that of the rest of the

population (13.8%).

When categorizing people with manufacturing skills according to employment

category, it is apparent that they are spread over many employment categories. The

percentage of pensioners, housewives, full and part time employed people, self

employed and unemployed people with manufacturing skills were all between 13%

and 19%. In terms of experience, a similar situation arises, with the majority of people

having between 1 - 19 years of experience in manufacturing. Almost half the people

with manufacturing experience (49.6%) obtained their qualifications in the 1990s, with

another 37.6% doing so since the beginning of 2000. Of the projected 15440 people

with manufacturing skills, 5020 have skills relating to textiles, 2840 have skills relating

to food and 2500 relating to dressmaking (including sewing and knitting).

5.4.3 Building Skills :

Survey results indicate that a projected total of 16940, or 13.1% of people in

Motherwell of working age, had building skills. However, only 2.8% of the population

had building qualifications. While 10.1% of those 18 - 34 years old had building skills,

about 16.5% of people in the higher age groups could say the same. Men also

dominated this skills category, with 23.1% of men, compared with only 5.3% of

women in Motherwell with building skills. The percentage of disabled people (11.5%)

with these skills almost equalled that of the rest of the population (13.2%). While

almost 23% of part time employed people indicated that they had building skills,

these were higher than those with full time employment (15.9%) or the unemployed

(12.6%).

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While the majority of those skilled in building have 1 - 4 years experience (40.5%),

about 23% had 5 - 9 and 10 - 19 years experience, respectively. About 20% of those

with qualifications obtained them prior to 1990, while those obtaining their

qualifications inthe 1990s and those after 1999 were relatively evenly divided. Of the

projected 16940 people with building skills in Motherwell, 4600 have painting skills,

3980 have brick laying skills, 1740 have carpentry skills and 1640 have plastering

skills.

CIVIL CONSTRUCTION SKILLS

SKILLS CRITICAL SKILLS NEEDED

PREDICTED CRITICAL SKILLS

SHORTFALL OR OVERSUPPLY

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

Mason 110 90 52 60 8 310 330 368 360 412

Carpenter 48 46 50 56 0 472 474 470 464 520

Concrete Curbing 18 32 16 14 4 142 128 144 146 156

Concrete Slab casters 14 54 44 2 42 26 -14 -4 38 -2

Concrete setting skills 2 22 22 20 0 38 18 18 20 40

Drain pipe layers 0 20 20 20 0 100 80 80 80 100

Storm water pipe layers 16 82 32 32 4 4 -62 -12 -12 16

Engineers 24 24 18 22 8 96 96 102 98 112

Fitters 0 2 2 2 2 60 58 58 58 58

Curbing 2 2 2 2 2 58 58 58 58 58

Pipe layers 0 4 8 18 0 260 256 252 242 260

Paving 2 2 2 0 0 398 398 398 400 400

Plastering masons 4 0 0 0 0 336 340 340 340 340

Premix layers 6 6 6 6 4 74 74 74 74 76

Plumbers 34 18 22 28 2 506 522 518 512 538

Rail track layers 0 8 8 8 8 40 32 32 32 32

Readyboard fitters 25 0 0 0 0 -2 0 0 0 0

Road construction skills 72 136 118 118 36 8 -56 -38 -38 44

Road signs and Marking 12 16 12 12 8 28 24 28 28 32

Planting of traffic poles 12 16 12 12 8 28 24 28 28 32

Shuttering 0 40 64 76 0 60 20 -4 -16 60

Surveyors 18 28 22 24 8 102 92 98 96 112

Tar surfacing 16 16 10 10 6 84 84 90 90 94

Welders 14 26 20 18 8 766 754 760 762 772

Steel fixer 4 46 56 62 4 36 -6 -16 -22 36

Scaffolder 0 0 8 16 0 20 20 12 4 20

Testing 12 12 12 16 28 -12 -12 -12 -16 -28

Civil Construction 82 244 162 176 76 -62 -224 -142 -156 -56

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Ganger 8 0 0 0 0 -8 0 0 0 0

Contracting Skills 114 0 0 0 0 -114 0 0 0 0

TOTAL 4052 3882 3928 3930 4320

BUILDING SKILLS

SKILL

CRITICAL SKILLS NEEDS

PREDICTED CRITICAL SKILLS

SHORTFALL OR OVERSUPPLY

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

Masons bricklaying 190 96 80 70 10 2290 2384 2400 2410 2470

Masons plasterers 152 74 78 68 8 1048 1126 1122 1132 1192

Carpenters 4 48 46 40 0 1056 1012 1014 1020 1060

Concrete slab casters 132 0 0 0 0 -72 60 60 60 60

Drain pipe layers 0 20 20 20 0 20 0 0 0 20

Metalwork Roofing 146 34 34 34 14 -106 6 6 6 26

Plumbers 144 20 14 12 2 496 620 626 628 638

Shuttering 132 40 40 40 0 -72 20 20 20 60

Site agents 138 8 4 4 0 -118 12 16 16 20

Pipe layers 0 20 20 20 0 60 40 40 40 60

Surveyors 138 8 4 4 0 -18 112 116 116 120

Welding 6 16 10 10 0 354 344 350 350 360

Trenching 132 80 80 80 0 168 220 220 220 300

Painting 146 32 32 28 8 2474 2588 2588 2592 2612

General mason 144 52 40 40 0 -84 8 20 20 60

Building engineer 136 8 4 4 0 -138 -8 -4 -4 0

Waterproofing 132 20 22 22 0 -112 0 -2 -2 20

Tiling 10 24 24 24 4 110 96 96 96 116

Laying floor or carpets 0 10 10 10 0 60 50 50 50 60

Concrete reinforcing 132 40 40 40 0 -112 -20 -20 -20 20

Glazing 142 20 16 14 4 -82 40 44 46 56

Concrete mixer 30 46 40 40 0 -10 -26 -20 -20 20

Brick making 60 100 40 40 0 120 80 140 140 180

TOTAL 8256 8818 8928 8962 9530

ELECTRICAL / MECHANICAL SKILLS

SKILLS CRITICAL SKILLS NEEDS

PREDICTED CRITICAL SKILLS

SHORTFALL OR OVERSUPPLY

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

Basic electrical

background 56 48 2 2 2 1344 1352 1398 1398 1398

Electrical engineers 0 4 4 4 0 480 476 476 476 480

Electricians 12 28 24 24 4 1488 1432 1436 1436 1456

High voltage engineers 2 6 4 4 0 58 54 56 56 60

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Stringer / Cable pullers 30 62 20 20 0 -10 -42 0 0 20

Diesel mechanics 0 10 10 10 0 60 50 50 50 60

Electric Fencing 2 2 2 2 2 38 38 38 38 38

Lubrication 30 42 0 0 0 10 -2 40 40 40

Ventilation Controller &

Dust barrier 20 30 0 0 0 0 -10 20 20 20

TOTAL 3478 3402 3514 3514 3572

5.4.4 MBA: Skills in the Building Industry: Southern & Eastern Cape23

The information below is based on average statistical information. The information is

also based only on companies that are registered with the Master Builder

Association. Thus the information excludes companies that are not registered on

MBA database. Thus the numbers are estimates on average, as the workforce in the

industry rise and fall quite dramatically as new contracts are started or existing ones

are completed.

No of registered companies ± 600

Unskilled Employees ± 8000

Skilled Employees ± 2000

Gen Foreman ± 60

Foreman ±120

Bricklayer/Plasterers ± 1150

Carpenters ± 200

Plumbers ± 100

Electricians ± 120

Painters ± 200

Joiners ± 50

23 Data provided by the NMB local MBA offices, March 2007.

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5.4.5 Projected Skills Shortages For Planned Mega Projects:

The metro has planned to undertake various mega projects that require skills in the

sectors under review. These projects include some of the NMB Vision 2020 projects

such as Njoli Square; Bayworld, NMBLP Hub; NMBLP 20 000sqm; NMBLP

9000sqm; Convention Centre; Coega IDZ; Ngqura Port; Soccer Stadium and Aspen

(see appendix).

The skills have been estimated based on the size of the each project. The Coega IDZ

skills estimates are based on the number of investors that have signed and only

reflect the skill requirements of such projects for the construction phase and not the

operations phase.

For this phase 2 of the NMB HRD project it has been difficult to get private

companies to disclose some of their future planned projects. The skills breakdown

below also excludes any government infrastructure projects planned, domestic

building, business office or residential developments planned in the metro. The scope

of this exercise has not included these latter areas.

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# � � < ) �1 ' � ) �1 - � < � - * �A �� & � - � � % - * � # ' �

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5.5 LEARNERSHIP TYPES AND SKILLS PROGRAMMES: NMB

5.5.1 Construction Education and Training Authority (CETA): NMB

CETA is moving towards a project based approach when it comes to future activities.

By adopting such an approach when implementing and managing various business

actions, CETA aims to ensure that effective and efficient control measures are not

only put into place but adhered to in all processes (this includes Learnerships and

Skills Programmes).

For the fiscal year 2006/2007, CETA will be focusing on the following Strategic

programmes that will assist the Authority in achieving the strategic goals and

objectives that support both legislation and NSDS targets. All project proposals will

be aligned with the above strategic programmes and the CETA will ensure equitable

distribution grants across the industry. The programmes are:

� Promote research and communication at CETA � Promote quality HRD in the sector � Identify and promote scarce and critical skills in the sector � Promotion of co-operatives, CCOE’s and New Venture creation initiatives � Promotion of quality delivery in the sector � Capacity Building of governance and constituent members

5.5.2 CETA Learnerships

LS Outside NMB NMB TOTAL (EC)

Construction roadworker (const) L1 225 0 225

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Community House Builder (entrep.) L2 282 (15*) 282

Construction contractor (lic) L2 25 0 25

Construction carpenter (fmw) L3 19 13 32

Construction contractor L2 136 251 387

Construction carpenter (mwp) L3 4 7 11

Construction mason (face bl) L3 15 4 19

Construction mason (plast) L3 0 2 2

Construction painter L3 16 6 22

Construction plumber L3 49 61 110

Construction supervisor (build) L4 10 0 10

Construction supervisor (lic r&s) L4 112 21 133

Construction tiler L3 0 12 12

Generic business administration L2(SA) 0 4 4

Generic business administration L4 0 4 4

Generic multi-sector proj.man. L4 0 18 18

Information technology L4 0 1 1

Labour recruitment consultancy L4 0 4 4

Manager (building construction) L5 3 5 8

Manager (civil construction-structural) L5 5 0 5

NC in Vehicle Maintenance L3 0 1 1

Public relations L4 0 4 4

Technician (civil) L6 9 31 40

Technician: electrical engineering L6 0 3** 3**

TOTAL

* Never commenced| ** Error of these should be

an electrician.

910

412

1362

5.5.3 MERSERTA Apprenticeship and Learnerships: NMB

The MERSETA is one of few SETAS’ that still offer apprenticeships. Apprenticeship

training involves technical training that includes practical and theoretical training. The

apprenticeships are offered in particular trades. To be a recognised fully qualified

artisan an apprentice must undertake a trade test. The requirements to undertake an

apprenticeship differs from trade to trade however learners must have a maths and

science background.

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MERSETA APPRENTISHIPS: 2007

National

Female

National Eastern Cape Females

Sub-sector

Auto

Automotive Electrician 10 2 1 1

Electrical 1 1 0 0

Electrical (Engineering) 31 8 11 6

Electronics Equipment Mechanician 14 0 0 0

Fitter 29 1 4 0

Motor Mechanic 16 0 0 0

Tool Jig & Die Maker 21 3 1 0

Turner Machinist 16 0 0 0

TOTAL 138 15 17 7

Motor

Automotive Body Repairer 403 7 32 0

Automotive Electrician 235 13 20 4

Automotive Engine Fitter 18 1 0 0

Automotive Machinist 166 3 16 0

Automotive Trimmer 3 0 0 0

Diesel Fuel Injection Mechanic 60 2 3 1

Diesel Mechanic 565 16 58 6

Fitter and Turner 23 0 6 0

Motor Mechanic 1708 39 149 5

Motorcycle and Scooter mechanic 31 1 4 0

Spraypainter 220 10 22 3

Tool Jig & Die Maker 39 5 2 0

Tractor Mechanic 33 0 1 0

Vehicle Body Builder 9 0 0 0

TOTAL 3513 97 313 19

Metal

Amature Winder 56 1 0 0

Automotive Electrician 1 0 0 0

Blacksmith 5 0 0 0

Boilermaker 367 9 32 1

Diesel Fitter 34 0 1 0

Diesinker and Engraver 2 1 0 0

Domestic Appliance Mechanician 2 0 0 0

Earth Moving Equipment Mechanic 151 2 1 0

Electrician 431 50 44 4

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Electronics Equipment Mechanician 9 0 4 0

Fitter 270 9 20 0

Fitter and Turner 434 24 60 2

Forklift Mechanic 31 3 5 0

Instrument Mechanician 63 14 0 0

Lift Mechanic 82 9 0 0

Millwright (Electromechanician) 438 32 24 5

Motor Mechanic 12 0 2 0

Moulder 18 0 4 0

Patternmaker 22 0 3 0

Plastic Mould Maker 11 0 1 0

Refractory Mason 2 0 0 0

Refrigeration Mechanic (commercial) 27 0 1 0

Refrigeration Mechanic (Industrial) 80 0 6 0

Rigger 22 0 0 0

Roll turner 5 0 0 0

Sheet Metal Worker 37 0 11 0

Telecommunications Mechanician 2 0 0 0

Tool Jig & Die Maker 383 7 155 2

Tractor Mechanic 23 0 0 0

Turner 230 6 48 0

Turner Machinist 2 0 0 0

Welder 102 9 21 1

Total 3354 176 443 15

GRAND TOTAL 7005 288 773 41

Industry NQF

level Qualification Title Learnership Name National

Eastern

Cape

Mechanical

2

N.C in Airconditioning,

Refrigeration and Ventilation

Airconditioning,

Refrigeration and

Ventilation 85 7

3

N.C in Airconditioning,

Refrigeration and Ventilation

Airconditioning,

Refrigeration and

Ventilation 125 7

4

N.C in Airconditioning,

Refrigeration and Ventilation

Airconditioning,

Refrigeration and

Ventilation 1 0

2

N.C in Automotive component

Manufacturing and Assembly

Automotive component

Manufacturing and 978 113

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Assembly

3

N.C in Automotive component

Manufacturing and Assembly

Automotive component

Manufacturing and

Assembly 23 23

2 N.C in Autotronics Autotronics 70 11

3 N.C in Autotronics Autotronics 24 10

4 N.C in Autotronics Autotronics 35 19

2

N.C in Engineering

Fabrication Boilermaker 481 57

3

N.C in Engineering

Fabrication Boilermaker 10 0

2

N.C in Engineering

Fabrication Sheetmetal Worker 96 0

2

N.C in Engineering

Fabrication Vehicle Body Building 5 0

5

N.C in First Line

Manufacturing Management

First line Manufacturing

Management 17 0

4

N.C in Further Education and

Training Certificate

Manufacturing and

Assembly Logistics 7 0

2

N.C in Industrial Rubber

Manufacturing

Mixing or Extruding or

Moulding or

Calendaring 29 0

2

N.C in Iron and Steel

Manufacturing

Iron and Steel

Manufacturing 115 0

3

N.C in Iron and Steel

Manufacturing

Iron and Steel

Manufacturing 20 0

4

N.C in Iron and Steel

Manufacturing

Iron and Steel

Manufacturing 6 0

3 N.C in Maintaining Vehicles Commercial Vehicles 29 0

3 N.C in Maintaining Vehicles Earthmoving Equipment 50 0

3 N.C in Maintaining Vehicles

Passenger, light

delivery 120 0

3 N.C in Management Team leader 232 0

4 N.C in Management Management 62 41

5 N.C in Management Management 102 46

1 N.C in Manufacturing, Manufacturing, 2917 171

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Engineering and Related

activities

Engineering and

Related activities

2 N.C Mechanical, Engineering Fitter and Turner 93 14

3 N.C Mechanical, Engineering Fitter and Turner 2 0

4 N.C Mechanical, Engineering Fitter and Turner 25 10

2 N.C Mechanical, Engineering Fitter 102 12

3 N.C Mechanical, Engineering Fitter 31 0

4 N.C Mechanical, Engineering Fitter 1 0

2 N.C Mechanical, Engineering Roll Turner 4 0

2 N.C Mechanical, Engineering Tool, Jig & Diemaker 57 22

2 N.C Mechanical, Engineering Turner 78 6

3 N.C Mechanical, Engineering Turner 15 6

3 N.C Mechanical, Engineering Tool, Jig & Diemaker 20 7

2 N.C Mechatronics Mechatronics 187 61

3 N.C Mechatronics Mechatronics 41 39

4 N.C Mechatronics Mechatronics 2 39

2

N.C Metal and Engineering

Manufacturing Processes

Metal and Engineering

Manufacturing

Processes 182 1

4

N.C Metal and Engineering

Manufacturing Processes

Metal and Engineering

Manufacturing

Processes 0 0

4

N.C Motor Sales and Support

services

Motor Sales and

Support services 219 0

4

N.C Motor Sales and Support

services

Parts & Accessories

Sales 15 0

4

N.C Motor Sales and Support

services Sales of Tyres 15 0

4

N.C Motor Sales and Support

services Service & Repair Sales 14 0

4

N.C Motor Sales and Support

services Vehicle Sales 108 0

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2 N.C Plastics Manufacturing Plastic Manufacturing 85 14

3 N.C Plastics Manufacturing Plastic Manufacturing 15 6

2

N.C Polymer Composite

Fabrication Polymer Fabrication 41 0

2

N.C Power and

Telecommunication Cable

Manufacturing Cable Manufacturing 4 4

5 N.C Rubber Technology Rubber Technology 12 12

2 N.C Servicing Vehicles Commercial Vehicles 99 31

2 N.C Servicing Vehicles Earthmoving Equipment 132 0

2 N.C Servicing Vehicles

Passenger, light

delivery 357 21

2

N.C Thermoplastic

Fabrication

Thermoplastic

Fabrication 22 0

3 N.C Welding All positions: Plates 1 0

2 N.C Welding

Downhand Welding:

Plates 152 5

5.5.4 MERSETA In-house Skills Programmes

Companies that are levy paying members to the MERSETA implement various in-house

on- job training programs. Metal sector: Artisan recognition agreement in Metal Industry

CERITIFICATE shortly called ATRAMI and various trades such as welder, boiler maker,

tool making etc. Motor retail and garages: Repair shop assistant mainly in Motor garages

and trades such as Motor mechanic, panel beating, spray painting automotive engine

fitter etc. Plastics Sector: Skills programs training is offered on job for various plastic

based small work units. Automotive Sector: An Amic certificate programs are used to

train workers on job and trades such fitter and turner, fitter, automotive electrician. New

Tyre sector also trains on short skills programs on job and specific to the sector needs.

This sector train trades such as electricians, fitters etc.

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5.5.5 Possible skills challenges in the NMB

The industry sectors that will be directly affected by the skills requirements for the key

construction related projects are civil & building and the mechanical, electrical,

instrumentation & piping sectors. Project management skills at all levels has been

highlighted as a scarce skill and crosses all sectors. All the occupations identified

above have been listed by the SETAs as scarce skills. The requirements at the

middle and high levels show the following:

Civil construction:

(i) Civil engineers

(ii) Structural engineers

(iii) Quantity surveyors

(iv) Survey technicians

(v) Structural riggers

(vi) Skilled shutter-hands, concrete-hands and re-inforcing-hands

Building construction:

(i) Architects (draughting)

(ii) Skilled bricklayers

(iii) Skilled carpenters

(iv) Electricians

MEI&P:

(i) Mechanical engineers

(ii) Electrical engineers

(iii) Mechanical and electrical technicians

(iv) Mechanical and electrical artisans

Currently the auto industry is the key driver of the local economy. The skills listed

below have been identified as in short supply when considering the projects planned

for the Metro. Thus the auto industry has the following skills shortages:

(a) Industrial engineers

(b) Process engineers

(c) Mechanical and electrical engineers

(d) Mechatronics engineers and technicians

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(e) Autotronics technicians

(f) Tool, jig and die makers

(g) Auto electricians

(h) Programmers

(i) Maintenance artisans

The various planned infrastructure projects as well as the operations phase of major

investors such as the Aluminium Smelter will have a huge impact on the extent of

skills shortages. A number of learnership programme and skills programmes

currently being implemented in the NMB region will somehow reduce the skills

programme. However more needs to be done to ensure the capacitation of the local

employed and unemployed human capital. The local industry through its participation

in various skills initiatives is already addressing the skills shortage challenge. A

number of lessons can be learnt from the interaction between training service

providers, local industry, government departments and education and training

institutions that collaborate in implementing development programmes to ensure the

skills are developed in the various trades and skills levels.

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6 HUMAN CAPITAL DEVELOPMENT INITIATIVES:

NMB

6.1 Overall context

All sectors of the South African economy have realised the severity of the skills

shortages that confront the country. A number of projects and programmes have

been initiated across the spectrum of agencies and institutions responsible for ensure

the economy has sufficient skills to grow at the pace anticipated. The brief

discussion below speaks on some of the key initiatives that government, professional

associations, SETA regional offices and the CDC have embarked on to mitigate the

potential human resource shortages in the sectors under review.

Briefly the focus is on:

� ASGISA and JIPSA initiatives � ECSA initiatives � CETA, MERSETA, CHIETA and ESETA initiatives � AIDC and CDC regional initiatives.

6.2 Accelerated and Shared Growth Initiative for South Africa (AsgiSA)

In 2004 the South African Government undertook to halve poverty and

unemployment by 2014. To achieve this, government adopted a two phased

approach. In the first phase, between 2005 and 2009, the aim was to increase the

annual growth rate to average 4, 5% or higher. In the second phase, between 2010

and 2014, an average growth rate of at least 6% of gross domestic product (GDP)

should be achieved.

In order to roll back the backlog that has emerged in public infrastructure, public-

sector investment is planned to rise to around 8% of GDP. As indicated in the

Medium Term Budget Policy 6 Statement in October 2005, government and public

enterprise investment expenditure for the period April 2005 and March 2008 is

planned to be about R370 billion.

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Of this, about 40% will be spent by public enterprises, mostly Eskom (R84 billion) and

Transnet (R47 billion, of which R40 billion is ‘core'), and mainly on power generation,

power distribution, rail transport, harbours and an oil pipeline. The general purpose is

to improve the availability and reliability of infrastructure services in response to

rapidly growing demand.

Key areas of government expenditure, incorporating all spheres, are:

� provincial and local roads, � bulk water infrastructure and water supply networks, � energy distribution, � housing, schools and clinics, business centres, sports facilities, and � multi-purpose government service centres, including police stations,

courts and correctional facilities.

Electronic communications is a key commercial and social infrastructure is receiving

the focus of attention. Plans to be implemented in electronic communications include:

� Implementation of a strategy to rapidly grow South Africa's broadband

network � Implementation of a plan to reduce telephony costs more rapidly � Completion of a submarine cable project that will provide competitive

and reliable international access, especially to Africa and Asia � Provision of subsidies to encourage the establishment of

telecommunications – and labour-intensive businesses in poor areas.

Another key challenge in the infrastructure sector is preparations for the 2010 FIFA

World Cup. This includes building or improving the 10 stadiums to be used, and

investment in the environs and access to the stadiums.

Other strategic interventions in the infrastructure arena include further development

of the country's research and development infrastructure, and further improvement in

the modalities for public-private partnerships in the development and maintenance of

public infrastructure.

Public-sector infrastructure spending has considerable potential spin-offs in terms of

the generation or regeneration of domestic supply industries, small business

development and empowerment. Government is seeking to maximise the positive

impact of these spin-offs on the domestic economy.

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In addition to the general infrastructure programmes, provinces were asked to

propose special projects that would have a major impact on accelerating and sharing

growth. A set of projects has been selected for finalisation of implementation plans,

some of which are already underway.

Provincial infrastructure projects aligned to AsgiSA:

� The Umzimvubu Catchment and Timber Industries Development

Initiative in the Eastern Cape � A diamond and gemstone jewellery project in the Northern Cape � A biofuels initiative that will cover at least Northern Cape, Free State,

KwaZulu-Natal, Eastern Cape and Mpumalanga � A water reticulation project for Mokopane-Vaalwater-Marken in Limpopo � A Moloto Corridor Rail Project, mostly in Mpumalanga � Gauteng-Durban Corridor including Johannesburg City Deep, Harrismith

Hub and Durban Dube Trade Port � The Johannesburg International Airport Logistics Hub and Industrial

Development Zone in Gauteng � The Makhathini Cassava and Sugar Project in KwaZulu-Natal � A national livestock project that would particularly focus on the Northern

Cape and North West � The Dilokong Platinum Corridor to integrate development located around

the planned De Hoop Dam in Limpopo � The proposed Square Kilometre Array and linked projects in Northern

Cape � The Cape Flats Infrastructure Project in the Western Cape

For both the public infrastructure and the private investment programmes, the single

greatest impediment is shortage of skills – including professional skills such as

engineers and scientists; managers such as financial, personnel and project

managers; and skilled technical employees such as artisans and IT technicians. The

shortfall is due to the policies of the apartheid era and the slowness of our education

and skills development institutions to catch up with the current acceleration of

economic growth.

The AsgiSA responses range from medium-term educational interventions to raise

the level of skills in areas needed by the economy to immediate measures to acquire

the skills needed for the implementation of AsgiSA projects.

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� The QIDS-UP programme aimed at achieving high levels of literacy and

numeracy in the lowest grades � The Maths and Science (Dinaledi) programme for 529 high schools to

double Maths and Science high school graduates to 50 000 by 2008 � An upgraded career guidance programme � A huge upgrading of the Further Education and Training colleges. � The Adult Basic and Education Training programme is to be ramped up,

based on a model developed in Cuba and New Zealand

Apart from interventions to address the skills challenge in the educational sphere,

measures include the development of an Employment Services System (to close the

gap between potential employers and employees), and Phase 2 of the National Skills

Development Strategy.

A short-term project is the development of a scarce skills database based directly on

the expected needs of the over 100 individual projects included in AsgiSA.

Other key skills projects include the deployment of experienced professionals and

managers to local governments to improve project development, implementation and

maintenance capabilities. The project managed by the Development Bank of

Southern Africa (DBSA) will deploy an estimated total of 150 expert staff, with the first

30 to be deployed in April 2006. The project will also include skills transfer to new

graduates. The DBSA is compiling a database of ‘retired experts' for this and further

possible deployments.

The Umsobomvu Youth Trust is driving a number of initiatives, many of which entail

youth volunteers, to support a range of skills development programmes.

A new institution is the Joint Initiative for Priority Skills Acquisition (JIPSA). It is led by

a committee of the Deputy President, key ministers, business leaders, trade unionists

and education and training providers or experts. Its job will be to identify urgent skills

needs and quick and effective solutions. Solutions may include special training

programmes, bringing back retirees or South Africans and Africans working out of

Africa, and drawing in new immigrants where necessary. It may also include

mentoring and overseas placement of trainees to fast-track their development. JIPSA

will have an initial timetable of 18 months, starting in March 2006, after which its

future will be reviewed.

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As part of JIPSA, 100 women will in April begin a one-year placement programme in

the United Arab Emirates focused on developing skills in infrastructure project

management and project financing as well as tourism. There will be similar

placement programmes in South African companies.

AsgiSA includes some specific measures of response to the challenges of exclusion

of the Second Economy.

This is aimed on leveraging the increased levels of public expenditure, especially

investment expenditure, to promote small businesses and broad-based

empowerment addressing such issues as access to finance, preferential procurement

and a review of the impact of regulations on labour-intensive sectors. Linking small

businesses to opportunities deriving from the 2010 FIFA World Cup is another task

for government. Private companies will also be persuaded to engage in affirmative

procurement. It is also clear that to achieve AsgiSA's goal of halving unemployment

and poverty by 2014, a particular attention will have to be given to the concerns of

women and youth.

With regard to women, the focus will be on expanding and accelerating access to

economic opportunities including skills development and finance. Programmes

include:

� Human resource training � Ensuring they have access to finance (micro to mega bucks) � Fast-tracking them out of the Second Economy � Ensuring their significant participation in agriculture and creative

industries � Improving their access to basic services � Increasing their participation in the Expanded Public Works Programme

(EPWP)

On the youth front, one intervention is to target unemployed graduates for jobs or

learnerships. This includes support for the Umsobomvu Youth Fund initiative to

register unemployed graduates on their database, and engage with business to

participate in this initiative. The focus on youth development will have to be

intensified in all spheres of government. Measures to promote youth development

during 2006/07 include:

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� Set up 100 new youth advisory centres � Enrol at least 10 000 young people in the National Youth Service � Enrol 5 000 volunteers to act as mentors to vulnerable children � Expand the reach of our business support system to young people � Intensify the Youth Co-operative Programme � Closely monitor the impact of our programmes on youth skills training

and business empowerment as an integral part of our national effort

Broad Based Black Economic Empowerment will be leveraged to support shared

growth. The leveraging components of BBBEE are:

• Provisions for access to finance for women and youths

• Funding commitments for housing and small business loans

• Skills development commitments

• Social responsibility commitments

• Other commitments to enterprise development

BBBEE charters will be assessed from time to time to establish how broad-based

their impact has been.

A further key small business initiative will be to pursue decisions made by Cabinet on

the regulatory environment for small businesses. Decisions on the small business

regulatory environment include:

� The Minister of Labour will lead a review of labour laws, including their

impact on small businesses � The reforms in tax administration affecting small businesses will continue � The DTI and the Department of Provincial and Local Government

(DPLG) will prepare recommendations on how to improve the regulatory

environment for small businesses in municipalities � The sector departments will review the impact of their laws and

regulations on small businesses.

In respect of municipalities, the AsgiSA process has also mandated the Department

of Provincial and Local Government (DPLG), in consultation with the DTI, to improve

the capacity of local government to support local economic development.

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The EPWP is a key Second Economy intervention. As part of AsgiSA, this

programme will be expanded beyond its original targets.

6.3 Initiative for Priority Skills Acquisition (JIPSA):

The immediate focus of JIPSA will be on the skills identified by AsgiSA.

Predominantly the focus is on engineering and planning skills, local and regional

planning skills in local government; artisan and technical skills; management and

planning in education; health and local government; teacher training; local economic

development skills and skills appropriate to BPO and tourism industry. These skills

interventions will feed into skills that are needed for infrastructure development in

government, private sector and state owned enterprises, the Expanded Public Works

Programme (EPWP) and public service and social services delivery e.g. health and

education.

Whilst some of these interventions are short term plans, they require languages and

information and communication technology (ICT) skills. Other sectors are agriculture,

creative industries, mineral beneficiation, chemicals, forestry, and cross cutting skills

such as finance. The skills development interventions are geared on benefiting

SMMEs within the sectors that have been identified. In summary and based on the

AsgiSA priorities, the following working areas for JIPSA have been identified:

• High level, world class engineering and planning skills for the 'network

industries', transport, communications and energy all at the core of our

infrastructure programme;

• City, urban and regional planning and engineering skills desperately

needed by our municipalities;

• Artisan and technical skills, with priority attention to those needs for

infrastructure development;

• Management and planning skills in education, health and in

municipalities;

• Teacher training for mathematics, science, ICT and language

competence in public education;

• Specific skills needed by the Priority AsgiSA, sectors starting with

tourism and BPO and cross cutting skills needed by all sectors especially

finance; project managers and managers in general;

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• Skills relevant to local economic development needs of municipalities,

especially developmental economists.

In May 2006, training of 100 local government practitioners has commenced in the

field of Project Management, by Old Mutual in conjunction with SAMDI and DPLG.

This has been a practical, hands-on course for practitioners.

� The Department of Public Works and The Presidency have co-ordinated

a programme to the United Arab Emirates (UAE) to secure suitable

placement of women in infrastructure projects. Placement offers have

also been secured in the Hospitality and Finance Sector. A total of 100

women and unemployed graduates are targeted. The process of

matching available placements and candidates is underway and the

DPW, DFA, IDT DBSA and women in construction have played a

significant role in this regard. � Another 120 women and youth are soon to be placed with the Bombela

Consortium to be part of the Gautrain Project. The number of women

with qualifications in the built environment who have responded to our

recruitment for both UAE and Gautrain Projects is pleasing. � Seventeen young black female interns jetted off to Qatar by Sasol on the

first leg of a four month long work experience and mentoring programme.

6.4 National Skills Fund: Provincial Strategic Projects

The National Department of Labour has initiated a strategic projects fund for skills

development projects in each of the nine provinces. Each province has submitted

proposals on the nature and extent of the strategic projects and the skills

development requirements that would support the achievement of government’s skills

development goals.

The Office of the Premier co-ordinated the drafting of the strategic projects plan for

the Eastern Cape Province. It consulted widely with all stakeholders.

For the Eastern Cape Province the following overall objective24 is defined as being:

24 Source: EC Strategic Projects Provincial Proposal July 2006

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To make a strategic contribution to the PGDP of the Eastern Cape by developing

critical and scarce skills amongst the youth of the province through providing effective

work-based training and learning within PGDP projects that will equip youth to enter

the labour market and participate in the economy. Participating projects will provide

the necessary work experience for youth, without specific skills to register for:

� Learnerships; � Apprenticeships; and, � for those who have obtained a qualification to gain work experience by

being placed in relevant Internships

Learners will be placed in projects within sectors identified as growth sectors in

the PGDP i.e.

� Agriculture � Infrastructure Development � Manufacturing and, � Tourism

Further, the project aims to address some of the main priorities identified by

Provincial Sector Skills Coordination Structures i.e.:

� Establishing a shared provincial training information management

system � Developing learning programmes and systems to support project-based

skills training on an ongoing basis � Establishing partnerships between role-players for effective training

delivery, responsive to the needs of individuals and the economy.

The specific objectives for the programme are defined as:

� The project aims to utilise existing PGDP and IDP projects to provide work-

based training opportunities for unemployed youth – unskilled, semi-skilled and

graduates through implementing: � 2 282 learnerships across the four identified economic sectors � 56 three year apprenticeships within the manufacturing and infrastructure

sectors

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� 155 internships for graduates across the four identified economic sectors � To develop provincial coordination capacity through:

� Utilising the management requirements of this project to strengthen

sector coordination structures. � Implementing a provincial training information system to effectively

manage this project thereby establishing the infrastructure required for

effective provincial coordination. � To develop the capacity of work places, in particular projects, to absorb

learners for work-based and experiential learning to ensure the ongoing

training of unemployed youth. � To expand and improve training provision within the province.

6.5 SETA Skills Development Initiatives

In South Africa currently there are 23 Registered SETAs. Each registered or form

part of the umbrella Skills Education Training Authorities (SETA) that was established

in terms of the Skills Development Act of 1998. This section of the report looks at the

initiatives that these agencies have put in place in the sectors relevant to the

requirements of the CAS.

6.6 CETA skills development initiatives: EC and NMB

CETA is moving towards a project based approach when it comes to future activities.

By adopting such an approach when implementing and managing various business

actions, CETA aims to ensure that effective and efficient control measures are not

only put into place but adhered to in all processes (this includes Learnerships and

Skills Programmes).

For the fiscal year 2006/2007, CETA will be focusing on the following Strategic

programmes that will assist the Authority in achieving the strategic goals and

objectives that support both legislation and NSDS targets:

o Promote research and communication at CETA

o Promote quality HRD in the sector

o Identify and promote scarce and critical skills in the sector

o Promotion of co-operatives, CCOE’s and New Venture creation

initiatives

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o Promotion of quality delivery in the sector

o Capacity Building of governance and constituent members

All project proposals will be aligned with the above strategic programmes. CETA will

ensure equitable distribution grants across the industry.

6.7 MERSETA Skills Development Initiative: EC and NMB

The MERSETA’s is one of few SETAS’ with regional offices that are strategically

located within the Nelson Mandela Metro Municipality. This presents the municipality

with an added advantage of easy to the access MERSETA resources. There are

several skills development initiatives that are undertaken by the regional MERSETA

office. All the initiatives undertaken by MERSETA are built on solid partnerships that

the regional office has established with several critical stakeholders such as the local

university and the local further education and training colleges; Coega Development

Corporation; the NMB municipality and other stakeholders.

The partnership initiatives are discussed under the relevant stakeholder sections. In

December 2007 MERSETA also signed an MOU with the Coega Development

Corporation (CDC). The MOU was signed by the MERSETA’s Chief Executive

Officer, Dr Raymond Patel and the CDC’s Chief Executive Officer, Mr Pepi Silinga.

Education and Training Quality Assurance (ETQA) : The MERSETA accreditation

as an ETQA has been extended for another three-year period for 81 qualifications

and related unit standards excluding the legacy trades inherited from the industry

training boards. The total number of accredited training providers is 468. A total

number of 331 workplaces were approved as facilities with the required infrastructure

to implement learnerships and skills programmes.

The MERSETA has registered a total number of 484 assessors and 44 moderators in

accordance with its assessor/moderator registration criteria. A total number of 8 877

learners have been issued with national certificates in recognition of their

achievement of NQF registered and trade qualifications. The MERSETA has signed

Memorandum of Understanding agreements with a number of other SETAs to ensure

qualifications can be provided across industries.

Skills Development Implementation: The Skills Development Implementation (SDI)

division is the operational backbone of the MERSETA. The division is divided into

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three major business units, each specialising in different areas of operations. The first

of these are the five chambers. The MERSETA represents the auto; metal and

engineering; motor retail and components; new tyre; and plastics chambers. The

members of these chambers are stakeholders as per the MERSETA constitution.

These stakeholders represent both employers and labour in the MERSETA sector

and are the most important source of information from industry.

During the 2005/2006 year, the chambers researched and identified the scarce and

critical skills within the different chambers. The shortages were quantified by the

chamber members, and the organisation’s operations are aligned to these numbers

and occupations. These lists are updated annually and form the starting point of the

MERSETA’s planning for implementation of the NSDSII. Research has been done on

different career path and career development programmes linked to the scarce skills

lists. The chambers are also responsible for the identification of qualifications needed

and prioritising these qualifications for development by the Standard generating

bodies and the learning programmes unit.

The next important unit in the SDI division is the learning programmes unit. The unit

works closely with several Standard Generating Bodies (SGBs) and workgroups, and

develops qualifications as identified by the chambers. Currently the MERSETA has

79 qualifications registered and 90 learnerships. For the year under review, 39

qualifications were developed, and registered and submitted to the South African

Qualifications Authority (SAQA).

The learning programmes unit is also responsible for the development of curriculum

and courseware for qualifications registered at the MERSETA. The chambers were

responsible for the function in the 2005/2006 year and a project to develop

courseware and curricula for 27 qualifications in the auto, metal and motor chambers

has been the focus. Another focus area for this unit was developing of new policies

and procedures with regard to implementation of learnerships.

The final unit in the SDI division is the regional offices. The MERSETA has six

regional offices: Gauteng, Witbank, Bloemfontein, Durban, Port Elizabeth and Cape

Town. The regional offices are responsible for customer services in the SETA. They

are the first line of contact with companies, training providers and other stakeholders

in the field. During the 2005/2006 year, the regional offices visited more than 7500

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companies and administered the agreements and contracts of 4798 learners and

3117 apprentices.

Institute of Sectoral or Occupational Excellence (ISOE): The MERSETA

launched the Welding Centres of Excellence in cooperation with the Department of

Education and the Department of Trade and Industry in 2006. The MERSETA

represents a sector in the South African economy that is currently experiencing a

critical shortage of key skills in various areas including welding, fabrication and

general fitting and machining. This demand is underpinned by government’s

Accelerated Shared Growth Initiative for South Africa (ASGISA) which aims to boost

the rate of growth in economic output to 6% by 2010.

The critical need for welding artisans has been identified and the ISOE model has

been chosen to place 300 new, fully qualified welding artisans per annum into the

industry from the end of 2008. The most important factor that underpins this project is

the intention to speed up the delivery of qualified welders to international welding

standards, so that South Africa can showcase this excellence to potential foreign

direct investors.

This programme aims to reduce the reliance on the importation of welding artisans.

The first two ISOEs will be positioned to accommodate three intakes of 20 learners

each per annum, which creates a pipeline of 60 qualified welders per annum per

ISOE from the end of 2008. The project plan will accommodate five such appointed

ISOEs with the capacity to deliver 300 qualified welders per annum into the market.

Appointment of the remaining centres will be through a consultative forum dedicated

to achieving full ISOE accreditation by the MERSETA.

The first two opportunities that presented themselves were the Saldanha Bay

Fabrication Hub to support the repair and manufacture of off-shore oil rigs, and the

well publicized Coega IDZ in the Eastern Cape. Agreements to support the

development of Welding Centres of Excellence were signed with West Coast College

in Vredenburg and with Eastcape Midlands College in Uitenhage. Both colleges are

located in regions where emerging large capital expenditure projects have

highlighted the need for highly trained welders and other artisans. The programme is

aimed at assisting in the reduction of unemployment and the upliftment of

communities in the regions.

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The success of these investment initiatives depends on an exceptionally high

standard skills training and development programme. To ensure training to the

required international standards, the MERSETA has teamed up with the Southern

African Institute of Welding (SAIW), an approved training body of the International

Institute of Welding (IIW). The SAIW is assisting these ISOEs in achieving IIW

accreditation through training of instructors, overseeing the acquisition and

installation of equipment and installing quality management systems.

Learners completing the NQF qualification will also achieve certificates endorsed by

the IIW. In crafting the solution, the MERSETA wanted to create an institute where

industry could recruit from the ranks of learners close to completing the full

qualification.

National Tooling Initiative: The MERSETA’s commitment to supporting the National

Tooling Initiative is now in its third year, having to date delivered the registered

qualification design solution, the supporting new curriculum and courseware and the

funding for skills transfer from the Institute of Advanced Tooling in Aurangabad

(India) to South Africa. This platform now becomes the basis from which to support

and motivate the implementation process for learnerships in Tooling Manufacture.

Solid progress of the MERSETA sponsored students in India over the last year will

culminate in their graduation on 21 July 2006. The deployment of these graduates is

aimed at supporting the instructor base at FET colleges and further research and

development at the universities of technology, as well as support for SMMEs in the

sector. A significant proportion of these students will be directly involved in support

for the start-up of a 100 learner intake at four FET colleges in the centres of

Tshwane, Durban, East London and Cape Town.

At national level, during 2005 MERSETA also supported the development and intake

of Mechanical Engineering students at the Tshwane University of Technology into a

specialised experiential programme for tool making. After completing their P1 and P2

obligations for the national diploma qualification in July 2006, all ten of these students

will be moving into B.Tech level studies before moving into industry full time.

This work at the TUT is the precursor to developing an NQF 5 and 6 level

qualification that will afford articulation of the FET band qualification to higher

education. In this way a career path is created for workers in the industry from high

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level practical engineering skills into small business management, corporate

promotions or specialist engineering services.

The industry FRIDGE study completed in July 2005 has become a guiding document

in the further development of this National Strategic Initiative. One of the most

significant conclusions was that: “One qualified toolmaker creates 28 downstream

jobs and one rand invested in tooling creates R250 in product value.” This core

finding represents one of the fundamental objectives of the SETAs – to support

economic growth for employment creation and poverty eradication.

Courseware Development: Courseware development project creates best practice

basis for mass skills development. The MERSETA’s vision is to address the lack of

up-to-date courseware in vocational training across its industry sectors and empower

those who want to learn.

The MERSETA embarked on a process in 2004 to identify best practice in developing

courseware that addressed three broad stakeholder requirements, namely academic

rigour, workplace competence and learner centredness. As a result, the courseware

development process has been improved in partnership with the Learnership

Institute’s methodologies.

Courseware for 214 unit standards, developed in phase 1, covered qualifications in

autotronics, mechatronics, tooling manufacturing, power and telecommunication

cable manufacturing, airconditioning and refrigeration, metal and engineering

manufacturing, iron and steel manufacturing and machining and is available in the

public domain.

Courseware includes a curriculum framework (based on the German Technical

Cooperation – GTZ model), a facilitator’s guide, a learner workbook, assessment

tools and tool and resources lists, all of which enable the achievement of the

outcomes of unit standards. By making courseware freely available, the concept,

adopted by the MERSETA, provides materials for accredited training and workplace

providers. Thus, the focus is taken away from developing courseware materials and

put to equipping learners with the necessary workplace skills.

Bursary Scheme: The bursary programme was undertaken to address scarce skills

and correct historical imbalances in access to engineering skills. From July 2003 to

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31 March 2006, MERSETA awarded 215 bursaries across South African universities

and technikons within identified scarce skills areas. In the 2005/2006 financial year,

MERSETA awarded 91 bursaries.

Bursaries are awarded to students across the country based on their socio-economic

backgrounds and excellent academic progress. The target for the next financial year

is a further 100 bursaries. The bursary unit monitors the academic progress of each

student. This is a major joint venture that the bursary unit has embarked on with the

help of faculty officers at higher education institutions. Eleven students from different

institutions have completed their studies.

There are currently 53 students doing their experiential training. The experiential

training is a prerequisite for students to qualify for national diplomas in various fields

of engineering. Out of 215 students, 151 are continuing with their studies. The

majority of students are studying towards engineering or technological qualifications

with only 11 studying marketing or management.

The regional MERSETA office allocated 20 bursaries to NMMU students to undertake

a manufacturing qualification.

Experiential Training/Students/Internships: A grant of R12500 per semester per

student is available to companies that are willing to provide experiential training to

students. A semester must have a minimum of five months and a maximum period of

six months. The grant is targeting those students undertaking a qualification, such as

a National Diploma, that requires them to undertake experiential learning as a

prerequisite for completing the National Diploma. However to qualify for such a grant

a student must not have other sources of compensation whether from the MERSETA

or any other source from either the student or company. Most critically the

qualification must have, 1. Relevance to the MERSETA scope of coverage which is

engineering related and 2. Result in a national diploma.

During the 2006 financial year the Eastern Cape Regional MERSETA office was

allocated 333 such grants and only a 100 of these special bursaries were awarded as

students did not apply for them.

Employment Skills Development Lead Employer (ESDLE): The MERSETA has

contracted the Automotive Industry Development Centre’s (AIDC) ESDLE to act as

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lead employer in an unemployment training programme. It is one of 21 ESDLEs

launched by the Department of Labour (DoL), Minister Membathisi Mdladlana, in May

2004. The DoL, through its ESDLE programmes, aims to increase the number of

employers participating in the regulated training system, train more people, create

additional learnership opportunities, and encourage the completion of learnerships,

thus improving the quality of life by creating jobs and fighting poverty in South Africa.

The primary focus of the ESDLEs are to service SMMEs, who employ between one

and 49 employees (small) and 50 – 149 (medium) employees, and to encourage

them to participate in skills development and training. There is an additional focus on

black economic empowerment (BEE) in regulated training. The AIDC ESDLE pilot

project was conducted on NQF level 1 in 2004/2005 to train 300 unemployed young

people which yielded an 87% success rate. In addition to which some learners have

found permanent employment. Due to the high success rate, the MERSETA

extended the project beyond the pilot phase to continue with training of learners on

NQF level 2. A total of 300 learners have subsequently been registered on NQF level

2, in the following programmes:

� 72 learners on the National Certificate in Automotive Component

Manufacturing � 132 learners on the National Certificate in Vehicle Repair and

Maintenance � 47 learners on the National Certificate in Fabrication � 13 learners on the National Certificate in Mechatronics � 13 learners on the National Certificate in Fitting � 23 learners on the National Certificate in Autotronics

The skills shortage has affected every sector in the economy, but in the automotive

industry, as the leading industry in the manufacturing sector, this challenge is

particularly acute. The industry is today integrated into the global sector and therefore

fully exposed to intense competitive pressures. This, coupled with the fact that the

industry is perhaps one of the most high-tech and rapidly technologically advancing

sectors, placed major demands on skills development. The focus of the MERSETA

has therefore been in the auto sector.

Training of the Unemployed: Working jointly with the Department of Labour the

regional office has during 2006 offered 72 learnerships. The learners have been

trained in several trades. RPL: Within the relevant trade the regional MERSETA

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facilitates the assessment as well as the undertaking of a trade test. The focus has

been on diesel mechanics, motor mechanics and electricians. However there has

been a challenged in implementing a large scale RPL exercise due to the shortage of

training providers, in particular in the manufacturing sub-sector.

6.8 CHIETA: Skills Development Initiatives: EC & NMB

SME TRAINING VOUCHER PROJECT: In its efforts to support small organisations

in skills development, the CHIETA has developed a web-based system to power

training vouchers that can be exchanged for courses/programmes with accredited

training providers registered on the system. The intention of the project is to support

small organisations in skills development and promote a culture of lifelong learning in

small companies SMEs in the chemical industries sector with less than 50 permanent

employees are welcome to apply.

SMEs and training providers complete applications on-line and training vouchers are

issued electronically to employees with a sms as confirmation of the approved

training application.

National Skills Fund Shutdown Network Forum Project: The CHIETA has

received and allocated further funding for 50 Learnerships in the Eastern Cape which

will be implemented with process industries in the chemical industries sector over the

next three years. The Learnerships are at NQF L2 to NQF L4 in the traditional artisan

trades: welder, fitter, rigger, boiler-maker, instrument mechanic and electrician.

Science Engineering & Technology Project With Schools: The CHIETA has

allocated funding to the South African Agency for the Science and Technology

Advancement (SAASTA), a division of the National Research Foundation (NRF) to

work with approximately 90 schools in the Eastern Cape in regions located near

companies in the chemical industries sector. The initiative will focus on working with

educators in Mathematics, Science and Life Skills with the following objectives:

1. Broadening educators and learners awareness and knowledge of SET

careers;

2. Identifying and nurturing of talent in Science and Mathematics;

3. In the long term increase the number of learners choosing science and

mathematics as subjects;

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4. Promote linkages between chemical sector companies and schools in

their community; and

5. Ultimately increase the number of learners who opt for science and

mathematics related tertiary study fields.

Discretionary Grants: Annually the CHIETA makes grants available to 198

companies across the Eastern Cape for Learnerships and apprenticeships detailed

on the CHIETA’s website: www.chieta.org.za

Interestingly the CHIETA also makes Learnership awards for critical and scarce skills

in a range of non-core areas, including marketing, supervisory and research product

development, and for example, supports 18 recently retrenched workers in a New

Venture Creation Learnership at Dow Agro Sciences in Berlin.

Training Providers: The CHIETA has a small, but steadily growing number of

accredited or programme approved providers in the region. Due to the nature of this

sector, learnership are normally undertaken within Universities, NMMU and WSU are

the key universities in the Eastern Cape offering such learnerships.

6.9 ENGINEERING COUNCIL OF SOUTH AFRICA (ECSA)

The ECSA has committed itself to undertaking several skills development initiatives.

Working in partnership with the ANCYL an initiative dubbed Engenius, Engineering

Body in Skills-Development Alliance, started in July 2006. The initiative is designed to

help address the acute shortage of engineering skills.

“The campaign aims to promote the engineering sector, from artisans through to

engineers, from a grassroots level, to encouraging existing engineers to remain in the

profession,” ECSA strategic implementation and quality director Liesel Kirsten said

during a function at Luthuli House, the ANC's headquarters.

The campaign, headed by ECSA's Daniella Melk, aims to support the government's

Joint Initiative for Priority Skills Acquisition, which identified engineering as a critical

skill needed to ensure that the country's economic growth is accelerated to six per

cent by 2014.

The objectives of Engenius are to unite the stakeholders that are involved in the

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development of engineering skills, including industry, government, the Sectoral

Training Authority, in order to join forces in steering, supporting and funding the

campaign.

Kirsten reported that the initiative also planned to visit high schools and colleges to

promote the engineering profession, as well as to unite and support organisations

that are already involved in promoting the profession.

ECSA linked up with the ANCYL on this project because of the contact the

organisation had with the youth of the country, which included a presence at all

universities. The campaign aims to spend in excess of R10-million over the next two

years.

The second initiative is focused on a drive to bring back retired engineers by the SA

Institute of Civil Engineering started on May 2006. Those approaching retirement

should be incentivised to extend their careers, and provide mentorship to the new

entrants to the profession.

“We need to ban early retirement, encourage expats to return to South Africa and

think of ways to accelerate training,” she said.

In fact, Lawless said that the drive to bring back to industry retired engineers as

mentors was highly successful. The drive assisted in accelerating the skills

development. ‘Thirty-nine retired engineers have been brought on board to assist

with skills development. “In fact, 160 unemployed graduates have since February

been placed,” Lawless reported.

As a last resort, South Africa would have to import skills, she said, as more projects

came on board. It was noted, however, that the number of experts returning to South

Africa was on the increase. Only half of local engineering practitioners on council's

books (27 March 2006)

The Engineering Council of South Africa (ECSA) aims to introduce compulsory

registration for all local engineering practitioners early next year, says new CEO

Professor Ravi Nayagar. In accordance with the Engineering Professions Act, Act 46

of 2000, ECSA is required to regulate the engineering profession by disciplining

errant engineering practitioners and by generating standards for the profession, with

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the overall aim of safeguarding the public against work that is below acceptable

standards.

“We have a core group of very competent people in South Africa. However, a

particular challenge in the South Africa engineering profession is that there is a

shortage of such competent engineers. “There are also questions around the quality

of some engineering work, mainly due to non-compliance to principles and standards

– in other words, engineers and technicians who take shortcuts,” he explains.

Madonsela adds that his four-year tenure will be marked by creating a much more

rigorous regulatory environment for engineering professionals.

South African registered professional engineers will be obliged to keep abreast of

developments and knowledge in their fields to maintain and demonstrate their

competence.

Building foundations (11 November 2006): The number of pupils matriculating with

good mathematics and science marks has to be increased in order to deal with the

crisis facing the country’s engineering profession and to ensure that transformation

takes place, says Engineering Council of South Africa (Ecsa) president Bob Pullen.

Ecsa CEO Paul Roux agrees that immediate steps should be taken to ensure that the

level of mathematics and science in high schools throughout South Africa is of the

highest standard in order to enable school leavers to pursue engineering-related

professions.

“There are bursary schemes that specifically call for previously-disadvantaged South

Africans (PDSAs) to apply, and this does assist in increasing the number of PDSAs

entering the profession,” he says, adding that many employers provide practical

experience and professional-development opportunities to enable young black

graduates to become competent at a faster rate.

Roux adds that, judging by the increase in the number of black people registering

with the council every year, one can safely assume that transformation is really taking

place in the profession. “There has been a significant increase in the number of

black people registering with Ecsa, while the number of their white counterparts has

declined in the last ten years,” says Roux.

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6.10 ADDITIONAL REGIONAL INITIATIVES: NMB

The information supplied by the SETAs provides an unsettling picture of the lack of

skills development taking place in the Eastern Cape in the sectors that are going to

impact the of the mega projects underway in the NMB, including the Coega Project.

Due to the strong presence of the auto-sector, most skills development initiatives

undertaken in the NMB region are predominantly focused in the auto industry.

However these initiatives provide innovative models for addressing skills that could

be transferred to other industries. However most of the established company’s offer

in-house training, which provides core training in various disciplines within the

automotive/engineering fields.

In addition to the SETAs, University and the Municipality, other key role players

undertake skills development initiatives. The Coega Development Corporation, AIDC

programme and the UDDI Skills Development are some of the key leaders in this

field. These role players have a coordinating and facilitating role, instead of

undertaking the training internally.

6.10.1 MATHS & SCIENCE INITIATIVES IN THE EDUCATION SECTOR

Initiatives for Grade 10-12: There are numerous initiatives targeting learners

doing maths and science. These initiatives are predominantly funded by the large

private companies that are located in the NMB area as well as by NGO’s.

Education Centres of Service: This is a new initiative entered into by the DoE

District in partnership with a private entity called PMG Education. The initiative is to

commence in April 2007. Initially the focus is on Grade 12. This partnership is

informed by the introduction of the new curriculum. The programme will provide a

support system to schools, teachers and learners; specific programmes in maths a

science presented by experienced trainers; there will also be subject specific teacher

training and testing and career guidance for grade 12 learners.

Maths and Science Programmes: At the time of drafting this document the Port

Elizabeth District office was in the process of conducting a survey with all the schools

under its jurisdiction to ascertain the nature and support programmes active within

the schools. A preliminary list of such programmes is attached in this report.

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Some of the programmes currently underway in the Metro are reflected on the table

below.

Table: NMB, current DoE Maths and Science Programmes

LEARNER AND/OR EDUCATOR SUPPORT PROGRAMMES

PROGRAM

LEARNERS/EDU

CATORS GRADE SUBJECT/LEARNING AREA SPONSOR

AMESA Educators 12

Dinaledi

Educators/Learner

s Maths/Science D.o.E & D.MST

EDDE

Programme Learners LO / HSS

Electoral

Democracy

development

ED/IEC

GMSA

Foundation

ML Olympiad Learners 10-12 Maths literacy GMSA

Herald

General

Knowledge

Quiz Learners General Knowledge

Herald Local

Business

Marula Kids

Competition Learners 3-7 HSS/NS SANPARKS

Mintech Quiz Learners Science

N P I

Debating Learners English

Ed Dept / Nat

Productivity

Institute

National

Maths

Olympiad Learners Maths

National

Science Expo Learners Maths /Science Tech SASOL

National

Science

Olympiad Learners Science

National

Teaching

Awards Educators 12 All subjects + management

Nat Dept of

Education

NMMU Maths

Olympiad Learners Maths

Protec Learners 10-12 Maths / Science SAPPI

SASOL SET Learners 12 Maths / Science NMMU/ SASOL

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Settlers Park

Junior

Science

EXPO

Learners /

Educators 1-7 Maths NS Tech VWSA

Star Schools Learners 10-12 Maths / Science D. of Transport

Motherwell Learners 10-12 Maths / Science Telkom

Zwide Learners 10-12 Maths / Science Telkom

THUTHUKA Learners 11-12 Maths / Eng/ Acc SAICA

VWSA

Incubator

School Learners 12 Maths / Science NMMU / VWSA

Young

communicator

s award Learners English

Ed Dept / Anglo

American /

Sowetan

The Nelson Mandela Metro has seen a steady increase in the number of Grade 9-11

learners. There has also been an increase in the number of learners enrolling in

technical colleges for the NCV and the traditional Nated courses. The change into the

new curricula poses great opportunities for the long-term but challenges in the short

term.

The nature of the challenges relate to the need to bring the teaching staff in technical

colleges and technical schools into speed with the objectives of the new curricula.

Another key challenge relates to the fear learners have historically had in taking up

maths and science. With the mandatory maths literacy and science components of the

courses, the implications are that there will be a need to introduce academic support

programmes with a maths and science focus.

The table above reflects the maths and science programmes being undertaken in the

Metro. These programmes are in line with the ASIGSA initiatives of promoting maths

and science. The current challenge is that lack of coordination of such programmes.

6.10.2 . Automotive Industry Development Centre Initiatives (AIDC) initiatives

Briefly, the AIDC works in partnership with business, government departments and

other organisations to invigorate economic development within the automotive

industry. Its focus areas are Skills Development and Training, Supplier Development

and Supply Chain Development.

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Recently the AIDC conducted an economic impact assessment study of its activities

programmes since the AIDC started. In summary the results for Skills Development

and Training reflected that with regard to job creation there were 605 full employment

opportunities (1 person year equivalents), multiplier of 15 private sector workers for

each direct job created. The impact of SME and BEE showed that there had been 56

BEE companies and 175 SME companies that had either directly benefited or

started.

The skills development component of their programme has been most impressive

and more than 150 companies and institutions were involved in these programmes:

• 52 171 individuals trained and/or impacted through AIDC programmes

• An average 75.5% of the enrolments consist of BEE students

• The HIV/Aids Workplace Programmes have impacted on more than 64

556 persons

Automotive Experiential Career Development Programme (AECDP): The AECDP

is an educational and mentoring programme designed and developed by the AIDC,

focusing on previously disadvantaged Black senior high school learners (Grade 12)

with the aim of developing, nurturing and increasing the pool of black engineers

available specifically to the automotive industry.

'Automotive Experiential Career Development Programme" is fully funded by NMB

since 2005. Currently in its 3rd year, initially the AIDC developed the pilot programme

informed by a request from the Metro. The Nelson Mandela University runs the

programme and all administrative and management work is done by the AIDC.

The AECDP addresses the skills gap that exists at schools and channels learners to

correct stages of study or career paths. The programme ensures good quality

mathematics and science learners and exposes the candidates to the automotive

industry.

Initially Grade 12 learners attend maths and science Saturday classes for 12 weeks.

This involves about 150-250 learners. All the learners are from the Nelson Mandela

Metro region. From the large pool of 150-250 the top 30 achievers are selected to

attend a winter school. The AIDC undertakes a vigorous selection process and the

top thirty achievers are then selected to attend the full time on-campus winter school.

The curricula content is on various fields of engineering. Part of the programme

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involves planned visits to relevant factories. During the winter school the learners are

continuously monitored and evaluated.

Partnership with NMMU: � Establishment of a Robotic Training Facility (AMTS) � AIDC merit awards for BEng (Mechatronic) students � Leveraged MERSETA bursaries for BEng (Mechatronic) students � Establishment of the AMTS Internship programme in the Eastern Cape

Development of new short courses (Electro-pneumatics, Robotics, 10 � Siemens Automation courses, Hydraulics, CNC programming) � Establishment of collaboration with Ruitlingen University (Germany)

including: � Student staff exchange � Automotive prototype development � Siemens Cyber junkyard automation project � Development of an internet enabled laboratory project

One of the biggest challenges facing the ongoing development and existence of

these valuable programmes is funding. The Skills Development and Training

programmes of the AIDC have been reduced substantially during 2006 as a result of

budget constraints. These programmes are now in almost full delivery cycle and need

financial injection to realize the outcomes for both institutions and industry alike.

Partnership with Eastcape Midlands and Port Elizabeth Colleges: AIDC has a

well developed partnership with Eastcape Midlands. Apart from the collaboration on

designing curricula, the AIDC has employed a learnership and skills coordinator

person that is physically based in the college.

� Establishment of Mechatronics Learnership [NQF 2-4]at East Cape Midlands

College � Established Vehicle Maintenance Learnerships at Port Elizabeth College

NQF 2-3] � Developed on SME Incubator Project to assist those learners that may not

find employment. Assisted “Bush Mechanics” to up skill themselves and

trained them in Entrepreneurial Skills

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6.10.3 . Coega Development Corporation Initiatives

The concerns raised by Coega on the limited skills availability was confirmed in 2004

when it became evident that alarmingly small numbers of learners under the

learnership, apprenticeship programmes and skills programmes were registered in

the Eastern Cape Province by the SETAs. These were needed to meet the expected

skills requirements for the Coega Project. This was evident from the fact that of the 9

233 learners registered nationally (MERSETA and ESETA) only 522 (this figure

excludes CHIETA and CETA) were registered in the Eastern Cape (less than six

percent).

Only 17% of the apprenticeships in training are from the Eastern Cape, a large

portion of which are in the tool, jig and die industry. If these categories are removed

the figure drops to 13%.

With very little time left to finalise planning and preparations for the magnitude and

extent of skills training required in the Coega Project, it became critical that initiatives

be undertaken and training begin in earnest.

The Coega Development Corporation has been working closely with the SETAs

(MERSETA, CHIETA, ESETA and CETA), Department of Labour, Office of the

Premier, higher education, further education and training colleges, and training

providers in a Coega Mega Projects HRD Task Team. This forum has participated in

the development of a Skills Development Proposal to the National Department of

Labour and the National Skills Fund. A business case for skills development for the

Coega Project has been accepted by the Department of Labour. Processes are in

place to ensure the Coega Project is given a strategic project status within the

Department with support and funding.

Engineering Learnership Programme: The most significant support for training to-

date has been forthcoming from the MERSETA and ESETA. Both of these

institutions have committed funding for 300 learners per year for the period 2006 to

2010. This equates to 3 000 learners with a value R12m per year. The Coega LBMS

is currently rolling out this programme with 600 learners in the mechanical and

engineering sectors in training over the period February 2006 to March 2007. 300

learners in the electrical engineering will be in learnership programmes before the

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end of March 2007. A five year plan has been drafted that outlines the extent of

learnerships being implemented.

Summary (detailed breakdown attached)

FIVE YEAR TOTAL NQF Level

NSF ESETA MERSETA TOTAL %

NQF Level 1 0 0 0 0 0% NQF Level 2 144 480 696 1320 40% NQF Level 3 396 375 342 1113 34% NQF Level 4 108 345 384 837 26%

TOTAL 648 1200 1422 3270 100%

Welding Centre of Excellence: A further initiative by the MERSETA and CDC to

establish a welding and fabrication Institute for Sectoral and Occupational Excellence

(ISOE) in NMB has been approved by the MERSETA EXCO for funding for the first

phase for R6.75-m. It involves the establishment of the ISOE at the Eastcape

Midlands FET College (and West Coast FET College) in Uitenhage. Instructor

development, equipment provision and the accreditation of the FET to International

Institute of Welding standard will be completed in the first phase (to June 2006).

Further role-player involvement: The CHIETA has indicated that it is able to fund a

small number of learners, but with a focus on the operations phase of the Project.

Their capacity in training provider support and development will be instrumental in

developing the training sector to meet the objectives of the IDZ. In addition a

research project has been initiated by the CHIETA to develop a framework for cross-

sectoral work, investigate and verify skills shortages, address the issue of a database

of artisans and investigate new funding methods. This will direct benefit on the Coega

Project.

The CETA has indicated that it has limited budgets for the learnership programme

and therefore would not be able to fund projects within the IDZ in the immediate term.

Programmes for accreditation and training provider support could be accessed as

part of their current programmes.

In terms of the capacity that the region has to deliver the scale of training identified

for the IDZ work is being undertaken within the regional training providers (East Cape

Training Centre) and the FET Colleges. The Re-capitalisation Plans for both the FET

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Colleges in NMB have taken the training requirements for the Coega IDZ into

consideration. The infrastructural requirements of the institutions are being

addressed via the Department of Education processes on re-capitalising the sector.

Work is being done with the NMMU to ensure that higher level programmes and the

technological support are in place for the skills training interventions. Their

involvement in meeting the operational skills requirements will be put in place shortly.

These key role-players have been instrumental in positioning the skills development

initiatives for the Coega Project. Work is ongoing to ensure that planning for

implementation and funding support is forthcoming.

6.11 SKILLS DEVELOPMENT FUNDING SOURCES

Funds for the critical skills required by the Metro should be vigorously pursued with

all identified stakeholders. Funding for various initiatives within the Metro has been

obtained from the National Skills Fund. For instance the Coega Development

Corporation has been awarded R24m for the training of 648 engineering

learnerships. Coega has also secured funding from the NSF Social Development

fund (DoL funding for unemployed persons) to the tune of R4.8m for the 2006/2007

financial year. Training in civils and building skills are currently being rolled out for

contracts on the Coega IDZ. The Metro has also been awarded NSF funds for the

implementation of learnership programmes.

The biggest challenge for the Nelson Mandela Bay is the lack of funding skills

programmes that targeting Grade 10-12. The AIDC and UDDI programmes are facing

major financial constraints. The key sources of funding for skills development

initiatives are:

DEPARTMENT OF LABOUR: The Department of Labour is the custodian of skills

development funding. There are various funding sources focusing on different skill

levels. There are bursaries in and scholarships in place for the high-level skills. The

funding for these skills is jointly offered with the National Research Foundation and

other government funded agencies. The National Skills Fund is another major source

of funding.

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SECTOR EDUCATION TRAINING AUTHORITIES: The different SETA’s make

available various funds for skills upgrading. The funds also target active participation

of SMMEs and unemployed people.

MUNICIPAL GRANTS: The municipality must make available targeted grants for

different skills levels. The focus should be on unemployed, Grade 10-12 learners and

students wishing to undertake a university qualification in the broad field of science

and technology. The current system of awarding grants for skills upgrading needs to

be revisited so as to target specific skills.

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7 RECOMMENDATIONS

Metropolitan municipalities have a mandate to advance socio-economic growth,

development and service delivery. In responding to this mandate the Nelson

Mandela Metro has and continues to be in the forefront in local economic

development and through various initiatives has created an enabling environment

for enterprise development, trade and foreign direct investments.

In its continued efforts of further advancing this environment, the municipality been

engaged in several processes to ensure the key strategic growth of particular

identified sectors. The 2005 NMBIC Strategic Planning Session identified these

sectors as the key strategic economic growth areas. The Nelson Mandela Bay

Vision 2020 and the 2005 National Skills Development Strategy (NSDS) 11

influenced the outcomes of the NMBIC strategy planning session. The strategic

thrusts informing the 2005 NSDS 11 are SETA’s and a reshaped FET and HE

sectors. The NSDS 11 identifies these three areas as critical for any human

resource development strategies. One the key purposes of NSDS 11 is to

maximise the potential for labour through the acquisition of knowledge and skills to

work productively and competitively in order to an improved quality of life for and to

put in place operational plans and necessary institutional arrangements so as to

ensure that this is achieved. These inform the NMB HRD strategy and other

principles entailed in NSDS 11.

The recommendations outlined below acknowledge that the systematic nature of

human capital initiatives requires vigorous and well-planned innovative

partnerships, resources and incentives. The assumption adopted is that education

institutions, research infrastructure, training facilities, business input, financial

institutions and a regulatory system form the basis of the institutional context that

should ensure the nurturing of human capital.

The Nelson Mandela Bay has in the past five three years experienced an

increasing rural-urban migration, that is people migrating from rural areas to the

urban centre in search of better employment opportunities. Whilst there is no

current study on the impact of this migration to the economy of the region, this

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migration is set to increase mainly due to the widely published foreign direct

investors expected in the Coega IDZ.

Thus, the thrust of the proposed NMB HRD strategy for the manufacturing,

construction, chemical and energy sectors takes a holistic approach with emphasis

on partnerships with key stakeholders. These stakeholders are local Further

Education and Training colleges, the Nelson Mandela Metropolitan University, the

various SETA’s (MERSETA, CETA, ESETA, S-SETA and CHIETA), private sector,

labour and civil society, strategic organisations such as the Coega Development

Corporation; ESKOM etc.

7.1 THE HRD STRATEGIC LEVERS

7.1.1 Human Capital Development Initiatives

� Learnerships, Apprenticeships and skills Programmes

The promotion of learnerships and apprenticeships is critical to the development of

skilled employees. Learnerships and apprenticeship system also promote job

creation and stakeholder interaction.

The administrative demands and the hidden costs of implementing learnerships

and apprenticeships require key attention, so as to alleviate the resource of these

initiatives.

Stakeholders must interact and develop solutions to ensure that all skills

programmes offered within the Metro are accredited and unit standard based.

The NMB needs to ensure that all instructors, assessors and curricula specialists

participating in human capital development initiatives have full accreditation. A

system of re-accreditation and assessment needs to be instituted and done

periodically.

To ensure quality assurance, in the absence of capacity on the ETQA function, in

areas such as the processing of learnership agreements; training provider

accreditation and workplace approval by potential host employers, partnerships

must be established with strategic entities resourced to provide such support.

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With regard to apprenticeships the Nelson Mandela Municipality should jointly with

the relevant SETA and other stakeholders; initiate the process of reviewing the

regulations governing apprenticeships so that they once again become a an

attractive training mechanism. The apprenticeship incentives must also be

reviewed and other qualitative mechanisms be adopted.

� Recognition of Prior Learning

Cost-effective and valid RPL is needed to enable individual learners to move from

one qualification to another in more efficient and effective learning pathways, which

is an essential working tool for the operation of a meaningful and dynamic NQF,

and the creation of a more open, accessible and relevant education and training

system and a vehicle for implementing lifelong learning. In particular, RPL provision

that is cost-effective and recognised by all stakeholders is an issue of national

importance.

The Department of Labour unemployed database as well as the CDC database

has workers registered on it as job seekers. A large number of the registered

unemployed workers have a lifetime of on-the job experience in various trades. The

“bush-mechanic” term exemplifies a person who has gained extensive experience

in mechanical related work, but who does not have a formally recognised

qualification. There is need for recognition, formalisation of such extensive

experience.

Mechanisms and resources are essential for the implementation of a vigorous

process of implementing RPL for the un-skilled and semi-skilled unemployed.

Implementation of RPL is depended on three critical factors, stakeholder

coordination, financial resources and availability of actual facilities for conducting

the trade tests.

The Nelson Mandela Bay must consider establishing and/or improving the existing

three fully accredited trade centres. These are with Eastcape Training Centre,

Indlela & Volkswagen. These are all privately owned entities.

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The Department of Labour works closely with the trade centres. An innovative

method for the smooth implementation of RPL without compromising other training

programmes offered by the trade centres is essential.

A successful RPL can allows for further skills development as it allows for the

recognition of a formal qualification that is unit standard based. This also enables

the individuals to enter into learnership or ABET programmes in specific learning

areas.

For instance, the construction sector has a large percentage of unskilled workers

that could undergo RPL. However such an initiative would depend on the

availability of financial resources. Through its accredited assessors and instructors

and in partnership with other entities, the CETA could start the process of

conducting RPL assessments. The RPL exercise would not only formalise the

training and experience acquired by these workers and other ABET learners but

also provide for their chances for employment.

The Nelson Mandela Metro must urgently consider putting in place a pilot Centre

that would conduct RPL. The pilot RPL centre could first focus on one sector and

depending on its success the model can be duplicated in other sectors. The

recommendation is that the Centre be implemented in partnerships with training

providers and other role-players.

� Workplace Experience

FET technical college graduates are predominantly unable to access workplaces.

With regard to learnerships, critical to their successful is the availability of a

workplace. As such a learnership is not functional if the learner does not a

workplace where acquired theory and practical skills can be put to usage.

It is in this regard businesses within the sectors under review have are a critical

partner in the quest for skills development and thus human resource development.

Their involvement is both practically necessary as well as strategic.

Sector specific drives on the regulated requirements for learnerships,

apprenticeships, and trade qualifications must be communicated to learners,

relevant employers and FET colleges. Such a drive would enable all these

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stakeholders to have a similar understanding of the critical role of workplace

experience.

7.1.2 EDUCATION AND TRAINING INSTITUTIONS

� Further Education and Training Sector

The number of technical schools in the Nelson Mandela Bay is impressive. The

biggest challenge facing the schools is the limited exposure and prioritisation they

currently receive. Technical schools are he breeding ground for learners wishing to

pursue engineering qualifications. It is critical that NMB technical schools receive

urgent attention from the municipality.

The state of facilities within these schools is not desirable. A task team must be

urgently established that will look at suggesting ways of revamping the capacity in

the NMB technical schools.

The newly started NCV programme is the first step towards aligning FET course

offerings with industry needs.

The task team focusing on technical schools must also extend its focus to FET

colleges. There needs to be a clear analysis of whether the FET programmes

planned and currently offered by will be able to respond to the skills gaps identified

in this report.

Linked to the curricula is the need to have structured partnerships between industry

and FET colleges. Amongst other things such partnerships should build in them

ongoing “bridging programmes” for learners to obtain exposure to the shop floor

and world of work, prior to learners registering for a specific course. A similar

programme could be implemented for technical school learners as well.

Whilst effort has been made to ascertain the skills capacity of staff teaching in FET

colleges more work in this regard needs to be done. The analysis must look at

issues of age, qualifications and equity profile of FET staff.

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� Private Training Provider Capacity

The Nelson Mandela Bay has a serious shortage of accredited private training

providers. The shortage of private training provider faces all sectors. Promoting

the development training provider capacity is essential. A model of providing

resources to facilitate the establishment of centres that will ensure the training of

people is specific trades is crucial. The capacitation of training provider needs to be

understood as the promotion of small business sector. Initiating a training centre

requires large sums of financial investments. Whilst some companies might be

accredited and posses a life time of sector specific experience their growing a

credible training provider might be hampered by the lack of financial resources.

The Ilitsha Holdings is a good example of a promising training provider, with the

right attitude and right skills but without the financial resources.

For instance there are only two private training providers, excluding industry in-

house training centres, which are accredited by the ESETA operating in the Nelson

Mandela Bay area, the IETI and ETC.

The promotion of training providers is critical for addressing skills shortages. The

Nelson Mandela Bay has abundant supply of labour; however there is drastic

shortage of skilled and semi-skilled labour. The skills analysis section gives an

indication of the type of skills that will be in short supply in the next 3-4 years. It is

therefore critical that quantity and quality of training providers be increased within

the Nelson Mandela Metro, if it is to be able to respond to the skills demands of the

planned projects.

� Nelson Mandela Metropolitan University

The Nelson Mandela Metro has one university. Whilst this is a potential challenge

and can result in complacency, it also presents major opportunities for both the

university and the municipality and other stakeholders. As a comprehensive

university, NMMU has a mandate to offer courses from NQF Level 1-12. The

presence of two large and active FET colleges with vibrant engineering sections

presents NMMU with an opportunity to focus on high-level skills within the broad

field of SET.

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South African universities have a mandate to be responsive to their local

communities and economies through establishing partnerships with civil society

and the private sector. Innovation and entrepreneurship are highly influenced and

dependent on a vibrant higher education system as well as research and

development infrastructure.

The ability to grow and increase high-level human capital is also reliant on higher

education and training planning and provisions. Thus the role of the Nelson

Mandela Metropole University is critical in position the Nelson Mandela Bay is

preferred destination for foreign direct investment in Southern Africa, from a human

resources point of view.

7.1.3 SECTOR EDUCATION TRAINING AUTHORITIES

The municipality must facilitate the establishment of a forum in which MERSETA,

ESETA, S-SETA, CHIETA and CETA participate. Such a forum will allow all role

players to understand the complexity of solving the skills challenges. Of critical

importance it will also allow the SETAs to look at measures that could be used to

improve the administration of learnerships as well as other administrative

challenges.

7.1.4 BUSINESS

The critical role played by business in the creation of human capital is well

documented. The business sector also plays a critical role in knowledge

production, encompassing innovation. As such a vibrant business sector also

promotes entrepreneurship.

The Nelson Mandela Bay Municipality must consider putting in place or facilitating

the creation of sector specific forums that will bring businesses in that particular

sector to share and network around issues relating to human capital development.

There also needs to be a concerted effort by the municipality to engage the

business community to be active participants in the learnership programme and

human capital development initiatives.

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As part of the drive to encourage business participation, active regional

Professional Association must be targeted.

7.1.5 HRD ROLE PLAYER GROUP

Attracting government financial resources aimed at human resource development

is critical. Both central and provincial government are major stakeholders in human

resource development. Concerted efforts must be put in place to ensure that the

NMB is able to benefit from such financial resources.

The EDTA needs to revise its HRD Stakeholder Group to include some of the key

strategic government departments as well as active civil society and youth

structures.

A revamped HRD Stakeholder Group must be chaired and coordinated by the

EDTA unit. Through the Trade and Investment Manager’s Office of the EDTA unit,

terms of reference for the HRD Stakeholder group must be developed. A further

recommendation is that the HRD Stakeholder Group must have sector specific

sub-structures that will be chaired by an HR person from the Metro and these will

meet regularly.

Thus the EDTA will be the serve as a coordinator, bringing together the relevant

stakeholders. It is however critical that the HRD Stakeholder Group includes the

Department of Education, Department of Labour and the Department of Trade and

Industry. The departments mentioned above are key drivers in funding skills

development. Most critically such a forum will allow the Departments of Labour

and Education together with the SETAs to raise common problems with quality

assurance structures such as uMalusi, HEQC, ETQA etc. These departments

must be approached as a matter of urgency to serve on this structure.

Critical to the HRD Stakeholder Group is the Office of the Premier together with the

ASGISA & JIPSA National offices. A representative from these offices must sit on

both the main HRD Stakeholder Group as well as the sector specific sub-

structures. The representative will continuously engage and keep the HRD

Stakeholder Group abreast about the latest developments, successes, necessary

strategic interventions and challenges within the field of skills development in the

province and at national level.

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7.2. RECOMMENDED IMPLEMENTATION PLAN: Urgent Areas

Accountability for the implementation of these urgent areas will rest within the EDTA Unit.

The unit will be responsible for ensuring that all the areas mentioned as well as those

deemed to be urgent are actually implemented. The detailed action plans for these areas

must be developed by the unit.

STRATEGIC

PRIORITIES

RATIONALE ACTIONS DELIVERABLES

TIMEFRAMES

1.Human Capital Development Initiatives

1.1 Learnerships, Apprenticeships & Skills Programmes

� Learnerships and

apprenticeships are critical for the development of skilled employees and also promote job creation.

� Identify the

resources and administrative demands and the hidden costs of implementing learnerships and apprenticeships. � Create a cross-sector database of accredited assessors. � Partnerships with ETQA entities. � Create a list of host employers undertaking learnerships (18.2 Learners) in the specific sectors

� A service

provider to facilitate the consolidation of information on learnerships taking place in the NMB Region. � Provide sector and trade, specific information on all learnerships levels. C Obtain an SLA between the Metro and relevant Seta’s on the

Dec 2007

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1.2. Recognition of Prior Learning (18.2 Learners)

� To certify and

recognise candidates and/or learners qualifications allowing for progression from one qualification level to the next. C Create an accessible vehicle for implementing lifelong learning that is cost-effective and recognised by all stakeholders.

� Appoint a Service

Provider who will coordinate the implementation of the RPL in the specific trades. � Identify Trade Centres in the NMB Region. � Conduct a recruitment exercise for candidates. � Identify funding sources for the entire RPL process.

� Assessment

of candidates in specific trades, a minimum of 5 per trade. � Assist candidates with the RPL administrative process. � Sign SLA and/or contracts with NMB Trade Centres. C Ensure candidates undertake RPL.

Dec 2007

1.3. Workplace Experience

� Workplace

experience is a pre-requisite to a completing a learner ship.

� Exploit the NMB

Company’s database operating in the various trades. � Create a list of companies currently undertaking learnerships. C Obtain concrete buy-in from the difference business chambers for members to take on board 18.2. Learners.

� NMB to Sign

an MOU with business chambers. � Increase number of learners undertaking workplace training. � Utilise database from the NMB FET colleges. C Identify a Service Provider to coordinate and interact with host employers.

Feb 2008

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1.4. Maths and Science Focus: Grade 10-12 & Teachers

� All technical and Engineering related skills require a solid comprehension and foundation in maths and science.

C EDTA to engage

NMMU Science Faculty for advice on the necessary action plan. �

Identify pilot Technical Schools to be beneficiaries in the NMMU-EDTA Maths and Science Programme. � Identify donors for sector specific

funding.

� MOU

between Municipality-NMMU-Technical School on Maths and Science Programme for Grade10-12 learners. � Identify Donors for the programme

Dec 2007

2. EDUCATION AND TRAINING INSTITUTIONS

2.1. Technical School

� The foundation for

growing technical skills.

� Municipality must

identify and pilot a school(s) located in previously disadvantaged areas. � Resources, equipment and qualified staff, must be channelled into the school. C EDTA to facilitate the twinning arrangement between the schools to a private sector company with a strong in house training facility.

� The EDTA

unit must allocate a person to coordinate the linkage and partnership. C A PPP agreement must be designed and signed.

Dec 2007

2.2. Public FET Colleges

� The backbone to

producing technical skills. C Government is dedicating recourses in growing and capacitating this education band

C Establish a sub-

committee to look at articulation between NCV and University Programmes. C The subcommittee to assess whether NCV Offerings match with the identified skills required by the region.

C

Dec 2007

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2.3. Private Training Providers

� Projected

economic growth in the region requires accredited, reputable, resourced and equipped training facilities

C A policy framework

on the capacitation of private training providers C Policy framework must consider the capacitation of SMME & entrepreneurs in this field. C Institutionalise the adoption of legally bidding joint ventures for large training contracts. C Joint Ventures with NMB located entrepreneur training providers

Dec 2007

3. SKILLS DATABASE

� Essential to have

an NMB focused database. � The database allows the municipality to keep track of skills available in the region. � Allows for proactive skills forecasting in critical areas.

� Interaction between all role-players with active database � Appoint a service provider C Appoint an EDTA IT staff to ensure knowledge transfer

� Agree on the

terms and conditions for accessing and using the database � Consolidate the database

Dec 2007

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4. HRD ROLE-

PLAYER GROUP

� Forum is a

strategic partner to the municipality for developing and updating HR strategic interventions. � Forum is a critical link between implementation and strategy development. � Formalised link between the Private sector HRD structures, SETAs and Key Government Departments (DoL, DoE, DTI & DST). � A key link to the Provincial PGDP HRD structures.

� Develop Terms of

Reference for the HRD Role Player Group. � Develop Terms of Reference for the Sub-committee Structures. � Invite organisations to formally participate and dedicate resources to the group. � Engage internal Municipal Processes for the establishment of the group.

� 2-meetings of

the HRD Role Player Group � Establish sub-committees of the HRD Role Player Group � Each subcommittee must hold at least 1-meetign a term. � 1-workshop focusing on the HRD Strategy and Plan.

Dec 2007

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8 CONCLUSION

Skilled and efficient human resources are globally a key factor in attracting foreign

direct investments. This means that skill upgrading is critical, and it must be

accompanied by a process of correctly matching skills supply with demand from

strategic sectors. Thus it is critical that regions proactively engage in skills upgrading

so as to mitigate skills constraints as well as increase their attractiveness as preferred

investment destination centres.

The Nelson Mandela Bay has a growing number of people seeking employment in the

region. The increases in workseekers coming to the region are because of various

reasons, mainly the ever-prosperous Nelson Mandela bay automotive sector as well as

the growth of the Coega IDZ. The increase in workseekers may have negative and

positive impact on the Nelson Mandela Municipality. The political pressure to provide

employment will increase. However, the increase in workseekers could also help ease

labour supply constraints. Thus the NMB has to ensure that these workseekers

possess the appropriate skills and/or are trained and skilled in the relevant technical

skills within manufacturing, construction, chemical and energy sector.

The current NMB institutional context, with regard to education and skills development

has the potential to increase the number of skills, from semi-skilled to skilled.

Numerous initiatives and partnerships link the education institutions to business,

government; SETA’s and other stakeholders like the Coega Development Corporation

are in place. The potential and capacity to develop well skilled workers has a solid

basis within the Nelson Mandela Bay. However, the increase in the demand for skilled

workers will without doubt put a strain on the current training infrastructure and

resources.

The long-standing relations between the manufacturing sector and education

institutions in the Nelson Mandela Bay has benefited business requiring the

engineering skills and forms a solid basis for innovative public-private partnerships in

the field of knowledge sharing and production.

The potential challenge due to skills shortage is a reality that could face the

implementation and operationalisation of mega projects locally, nationally and

internationally. The impact will be significant for all projects requiring semi-skilled high-

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level engineering skills. The ECSA statistics on registered engineers in South Africa

indicates that the Nelson Mandela Metro has to consider strategies to increase the

number of engineers in the region. There needs to be a strategic marketing process to

position the Nelson Mandela Metro as the Eastern Cape hub for developing excellent

engineers.

The initiatives that are being undertaken across South Africa by all companies across

the sectors; government and other role players such as Coega to mitigate the potential

human resource shortages indicates the commitment on the part of the South African

government and business to drastically increase and improve the quality of its human

resources. South Africa’s skills shortage is one of the counties most notable apartheid

legacies. The role played by initiatives such as ASGISA and JIPSA; professional

bodies like ECSA; SETA projects (MERSETA, CHIETA, Services SETA); NMB Metro

and the Coega Development Corporation are but some of the examples that could

provide useful insight in how Alcan could address the skills challenge. Training

interventions will not start in a vacuum, but will build on existing literacy and numeracy

skills. South Africa has established adult basic education and training initiatives and the

education system has been recently restructured. The restructuring of the HE and FET

sectors allow for better alignment between industry and education institutions.

Partnerships between HE and FET; business; government and other civil society

organisations is pivotal in winning the skills shortage challenge. The shortage of

engineers, technicians and technologists in the different engineering fields in particular

metallurgy is of major concern. In comparison to other South African universities, there

are low numbers of students graduating with an engineering qualification from both the

local university and further education colleges. The low numbers affect all fields of

engineering. Training professional engineers and providing relevant work experience

for technicians and technologists be of paramount necessity. Within the engineering

field it is therefore critical that education institutions must form partnerships with the

business sector.

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APPENDIX A

EAST CAPE MIDLANDS

Charles Goodyear Campus

Source of Funds

Purpose of Facility

New/Old building Equipment Facility Users

Safety & Health Standard

Maintenance Cycle

Maintenance Staff

Techinical Staff Qualifications

Class fees, Main building: Main building Administration Admin, Adheres to College budget None but Governing

Industry Administration is about 60 well equipped Lecturing staff, the safety and

makes provision general Council

training Welding, yrs old and all training Learners and health standards

for maintenance assistants and appointees

Motor facilities in employees work for lecturing staff have industry

Machining and building well from industry equipment, helps when the experience.

Basic Hand equipped building and need arises Lectureres have

Skills College grounds teaching

qualifications

with assessor

and

moderation

training

Class fees Out buildings: Out building Facilities in Lecturing staff, Adheres to the

College budget None, but Governing

Electrical and ages ranges from building well learners and safety and

makes provision general Council

Electronics 10 - 25 yrs equipped employees health standards

for maintenance assistants and appointees

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workshops, from industry work, for lecturing staff have industry

class rooms, equipment helps when the experience.

computer room, buildings and need arises Lecturers have

Student toilets College grounds teaching

qualifications

with assessor

and

moderation

training

Class fees Main building: Historic Fairly equipped College Standard Building None due to None due to N/A

- Campus monument, 102 with furniture. personnel: eg brickwork is in too limited funds too limited

administration yrs old Poorly equipped Admin staff & a fair condition. funds

-Tuition with training Teaching staff - Windows &

-Examinations aids roof needs major

-Student renovation

gatherings - Building is

damp and

mouldy

Class fees Out buildings: Estimated age Fairly equipped - Students as a Expect for

None due to too None due to N/A

- Library is 50 years with furniture, Media & garage roof the limited funds too limited funds

- PC room Books, PC's and Technology building

- Study room Printers centre structures are

- Garages - College to very solid

secure vehicles

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Class fees Out buildings: Estimated age N/A - College Poor structure None due to None due to N/A

- Tuckshops is 50 years personnel as a and condition, too limited too limited

- Store store was build with funds funds

- External donated

providers as materials

tuckshop

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APPENDIX B

Learnership Total SETA Implementing Agency

Subtotals 2007 2008 2009

Fabrication Boilermaking, Mechanical Engineering NQF Level 2

24 Merseta Coega 24 24

Fabrication Boilermaking, Mechanical Engineering NQF Level 2 Merseta ELIDZ 0 Fabrication Boilermaking, Mechanical Engineering NQF Level 3

48 Merseta Coega 48 36 12

Fabrication Boilermaking, Mechanical Engineering NQF Level 3 Merseta ELIDZ 0 Fabrication Boilermaking, Mechanical Engineering NQF Level 4

12 Merseta Coega 12 0 12

Fabrication Boilermaking, Mechanical Engineering NQF Level 4 Merseta ELIDZ 0 Fitting, Mechanical Engineering NQF Level 2 12 Merseta NM Metro 12 12 Fitting, Mechanical Engineering NQF Level 3 72 Merseta Coega 48 24 24 Fitting, Mechanical Engineering NQF Level 3 Merseta ELIDZ 0 Fitting, Mechanical Engineering NQF Level 3 Merseta NM Metro 12 12 Fitting, Mechanical Engineering NQF Level 4 Merseta NM Metro 12 12 Machining, Mechanical Engineering NQF Level 3 36 Merseta Coega 36 24 12 Mechatronics NQF Level 2 12 Merseta NM Metro 12 12 Mechatronics NQF Level 3 36 Merseta Coega 24 12 12 Mechatronics NQF Level 3 Merseta Metro 12 12 Mechatronics NQF Level 4 22 Merseta Coega 12 12 Mechatronics NQF Level 4 Merseta Metro 10 10 National Certificate Automotive component manufacturing and assembly NQF 2 – 4

0 Merseta ELIDZ 0

National Certificate Manufacturing and Assembly Logistics NQF4

0 Merseta ELIDZ 0

Rigger, Mechanical Engineering NQF Level 3 12 Merseta Coega 12 12

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Toolmaking, Mechanical Engineering NQF Level 2 12 Merseta Coega 12 12 Toolmaking, Mechanical Engineering NQF Level 3 24 Merseta Coega 24 12 12 Welding (all positions) NQF Level 2 36 Merseta Coega 36 36 Welding (all positions) NQF Level 2 Merseta ELIDZ 0 Welding (all positions) NQF Level 3 72 Merseta Coega 72 36 36 Welding (all positions) NQF Level 3 Merseta ELIDZ 0 Welding (all positions) NQF Level 4 36 Merseta Coega 36 36 Welding (all positions) NQF Level 4 Merseta ELIDZ 0 National Certificate in Vehicle Maintenance (Passenger, Light Delivery Vehicle - Level 2) 44

35 Merseta 0

National Certificate in Vehicle Maintenance {Passenger , light delivery vehicle – level 2}

Merseta Amathole 23 23

National Certificate in Vehicle Maintenance {Passenger , light delivery vehicle – level 2}

Merseta ELIDZ 0

National Certificate in Vehicle Maintenance {Passenger , light delivery vehicle – level 2}

Merseta NM Metro 12 12

National Certificate in Vehicle Maintenance {Passenger , light delivery vehicle – level 2}

Merseta Ukhahlamba 0

National Certificate in Vehicle Maintenance {Passenger , light delivery vehicle – level 3

12 Merseta NM Metro 12 12

National Certificate in Vehicle Maintenance {Passenger , light delivery vehicle – level 4

10 Merseta NM Metro 10 10

TOTALS 523 523 264 204 55

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APPENDIX C

COEGA LEARNERSHIP PROJECT FIVE YEAR PLAN

PLANNED TOTAL

FOR YEAR 2006 / 2007 2007 / 2008 2008 / 2009 2009 / 2010 5-YEAR TOTAL

SETA

NQF Level

NSF ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

Bricklayer NQF Level 3

CETA

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Carpenter NQF Level 3

CETA

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Concrete Hand NQF Level 3

CETA

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Reinforcing Hand NQF Level 3

CETA

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Shutter-hand NQF Level 3

CETA

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Construction Contracting Level 2

CETA

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Chemical Operator NQF Level 2

CETA

2 0 0 0 0 12 0 0 12 0 0 0 0 0 0 0 0 12 0 0 12

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Chemical Operator NQF Level 3

CHIETA

3 0 0 0 0 0 0 0 0 12 0 0 12 0 0 0 0 12 0 0 12 Chemical Operator NQF Level 4

CHIETA

4 0 0 0 0 0 0 0 0 0 0 0 0 12 0 0 12 12 0 0 12

Electrical Contracting and Entrepreneur Learnership NQF Level 3

ESETA

3 0 0 0 0 0 15 0 15 0 15 0 15 0 30 0 30 0 60 0 60

National Certificate in Electrical Engineering (Distribution) NQF Level 2

ESETA

2 0 45 0 45 15 15 0 30 0 0 0 0 0 15 0 15 15 75 0 90

National Certificate in Electrical Engineering (Distribution) NQF Level 3

ESETA

3 0 0 0 0 15 30 0 45 15 15 0 30 0 0 0 0 30 45 0 75

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National Certificate in Electrical Engineering (Distribution) NQF Level 4

ESETA

4 0 0 0 0 0 0 0 0 0 30 0 30 0 30 0 30 0 60 0 60

National Certificate in Electrical Engineering (Electrical Construction) NQF Level 2

ESETA

2 0 135 12 147 30 45 0 75 0 15 0 15 0 15 0 15 30 210 12 252

National Certificate in Electrical Engineering (Electrical Construction) NQF Level 3

ESETA

3 0 0 0 0 0 75 12 87 30 30 0 60 0 45 0 45 30 150 12 192

National Certificate in Electrical Engineering (Electrical Construction) NQF Level 4

ESETA

4 0 0 0 0 0 0 0 0 0 60 0 60 0 60 0 60 0 120 0 120

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National Certificate in Electrical Engineering (Generation) NQF Level 2

ESETA

2 0 30 0 30 0 15 0 15 0 0 0 0 0 0 0 0 0 45 0 45

National Certificate in Electrical Engineering (Generation) NQF Level 3

ESETA

3 0 0 0 0 15 15 0 30 0 15 0 15 0 0 0 0 15 30 0 45

National Certificate in Electrical Engineering (Generation) NQF Level 4

ESETA

4 0 0 0 0 0 0 0 0 0 30 0 30 0 15 0 15 0 45 0 45

National Certificate in Electrical Engineering (Transmission) NQF Level 2

ESETA

2 0 45 0 45 15 15 0 30 0 0 0 0 0 15 0 15 15 75 0 90

National Certificate in Electrical Engineering (Transmission) NQF Level 3

ESETA

3 0 0 0 0 15 30 0 45 15 15 0 30 0 0 0 0 30 45 0 75

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NMB HRD Strategy: 2007 x/144 Drafted by CDC

National Certificate in Electrical Engineering (Transmission) NQF Level 4

ESETA

4 0 0 0 0 0 0 0 0 0 30 0 30 0 30 0 30 0 60 0 60

National Certificate in Measurement Control and Instrumentation NQF Level 2

ESETA

2 0 45 0 45 0 15 0 15 0 0 0 0 0 15 0 15 0 75 0 75

National Certificate in Measurement Control and Instrumentation NQF Level 3

ESETA

3 0 0 0 0 15 30 0 45 0 15 0 15 0 0 0 0 15 45 0 60

National Certificate in Measurement Control and Instrumentation NQF Level 4

ESETA

4 0 0 0 0 0 0 0 0 0 30 0 30 0 30 0 30 0 60 0 60

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NMB HRD Strategy: 2007 xi/144 Drafted by CDC

Fabrication Boilermaking, Mechanical Engineering NQF Level 2

MERSETA

2 0 0 144 144 24 0 36 60 0 0 0 0 0 0 0 0 24 0 180 204

Fabrication Boilermaking, Mechanical Engineering NQF Level 3

MERSETA

3 0 0 0 0 36 0 36 72 12 0 36 48 0 0 0 0 48 0 72 120

Fabrication Boilermaking, Mechanical Engineering NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 12 0 36 48 0 0 36 36 12 0 72 84

Fabrication Sheetmetal, Engineering NQF Level 2

MERSETA

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Fabrication Sheetmetal, Engineering NQF Level 3

MERSETA

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Fabrication Sheetmetal, Engineering NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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NMB HRD Strategy: 2007 xii/144 Drafted by CDC

Fitting, Mechanical Engineering NQF Level 2

MERSETA

2 0 0 72 72 0 0 24 24 0 0 12 12 0 0 0 0 0 0 108 108

Fitting, Mechanical Engineering NQF Level 3

MERSETA

3 0 0 0 0 24 0 24 48 24 0 12 36 0 0 0 0 48 0 36 84

Fitting, Mechanical Engineering NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 0 0 36 36 0 0 36 36 0 0 72 72

Machining, Mechanical Engineering NQF Level 2

MERSETA

2 0 0 57 57 0 0 0 0 0 0 0 0 0 0 0 0 0 0 57 57

Machining, Mechanical Engineering NQF Level 3

MERSETA

3 0 0 0 0 24 0 12 36 12 0 0 12 0 0 0 0 36 0 12 48

Machining, Mechanical Engineering NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 0 0 24 24 0 0 12 12 0 0 36 36

Mechatronics NQF Level 2

MERSETA

2 0 0 12 12 0 0 12 12 0 0 0 0 0 0 12 12 0 0 36 36

Mechatronics NQF Level 3

MERSETA

3 0 0 0 0 12 0 12 24 12 0 12 24 0 0 12 12 24 0 36 60

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NMB HRD Strategy: 2007 xiii/144 Drafted by CDC

Mechatronics NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 12 0 12 24 0 0 24 24 12 0 36 48 Metal & Engineering Manufacturing NQF Level 2

MERSETA

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Metal & Engineering Manufacturing NQF Level 3

MERSETA

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Metal & Engineering Manufacturing NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Rigger, Mechanical Engineering NQF Level 2

MERSETA

2 0 0 36 36 0 0 12 12 0 0 0 0 0 0 12 12 0 0 60 60 Rigger, Mechanical Engineering NQF Level 3

MERSETA

3 0 0 0 0 12 0 12 24 0 0 12 12 0 0 12 12 12 0 36 48 Rigger, Mechanical Engineering NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 0 0 12 12 0 0 24 24 0 0 36 36

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NMB HRD Strategy: 2007 xiv/144 Drafted by CDC

Toolmaking, Mechanical Engineering NQF Level 2

MERSETA

2 0 0 36 36 12 0 0 12 0 0 0 0 0 0 6 6 12 0 42 54

Toolmaking, Mechanical Engineering NQF Level 3

MERSETA

3 0 0 0 0 12 0 12 24 12 0 0 12 0 0 6 6 24 0 18 42

Toolmaking, Mechanical Engineering NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 0 0 24 24 0 0 12 12 0 0 36 36

Welding (all positions) NQF Level 2

MERSETA

2 0 0 153 153 36 0 36 72 0 0 0 0 0 0 12 12 36 0 201 237

Welding (all positions) NQF Level 3

MERSETA

3 0 0 0 0 36 0 60 96 36 0 24 60 0 0 36 36 72 0 120 192

Welding (all positions) NQF Level 4

MERSETA

4 0 0 0 0 0 0 0 0 36 0 48 84 0 0 48 48 36 0 96 132 Call Centre Agent NQF Level 4

Services SETA

4 0 0 0 0 12 0 0 12 24 0 0 24 0 0 0 0 36 0 0 36 Mixed Farming Systems NQF Level 1

PAETA

1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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NMB HRD Strategy: 2007 xv/144 Drafted by CDC

Mixed Farming Systems NQF Level 2

PAETA

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Accommodation Services NQF Level 2

THETA

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Food & Beverage Services NQF Level 4

THETA

4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tourism Guiding NQF Level 2

THETA

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL 0 300 522 822 372 300 300 972 264 300 300 864 12 300 300 612 648 1200

1422

3270

2006 / 2007 2007 / 2008 2008 / 2009 2009 / 2010 FIVE YEAR TOTAL

NQF Level NSF

ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

NSF

ESETA

MERSETA

TOTAL

%

NQF Level 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0%

NQF Level 2 0 300 522 822 144 105 120 369 0 15 12 27 0 60 42 102 144 480 696

1320 40%

NQF Level 3 0 0 0 0 216 195 180 591 180 105 96 381 0 75 66 141 396 375 342

1113 34%

NQF Level 4 0 0 0 0 12 0 0 12 84 180 192 456 12 165 192 369 108 345 384 837 26%

TOTAL 0 300 522 822 372 300 300 972 264 300 300 864 12 300 300 612 648 1200 1422 3270 100%


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